DAX: Psychological support in focus

Since mid of April the German stock market has been trading in a correction mode and a downside trend channel.

Source: Bloomberg

The DAX hast lost some supports in the recent days. The situation from the technical point of view is a little bit critical.

Currently the DAX is testing the Fibonacci retracement (38.2 per cent) at 11,250. Below this support on closing price the lower limit of the mentioned trend channel at 11,160 would be the next target.

We see a very important support zone at 11,000 on the daily chart. This is a psychological level. Further supports are the increasing 200-days weighted moving average (WMA) at 10,996, the trading range at 10,987/10,852 and finally the next retracement at 10,892 (50.0 per cent).

German stock market DAX on daily basis

Source: IG Charts

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