DAX: Only an improvement

After the successful test of the psychological price level at 9,000 the German stock market has been continued the improvement.

Source: Bloomberg

But now the countermovement could reach its limit.

Currently the DAX is trading slightly above the lower trend line of the downward trend channel at 9,430. Above this price level (on closing price) the German Blue Chips could continue the improvement in the direction of the 38 days moving average (EMA) at 9,569. The next technical target price would be the psychological level at 10,000.

Below the mentioned trend channel line a further test of the support at 9,000 would be possible.

Despite the current improvement the DAX is trading in an overlying downward trend. The significant falling 200 days weighted moving average (WMA) shows a disappointing technical picture too.

German stock market DAX on daily basis

Source: IG charts

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