DAX: Strong intersection-resistance in the focus

The German stock market DAX has reached a strong intersection-resistance in the recent days.

Source: Bloomberg

This includes the falling weighted 200 days moving average (WMA) at 10,842 and the Fibonacci retracement (50.0 per cent) at 10,861.

These are not the only resistances. The psychological level at 11,000 and the upper trend line of the downside trend channel at 11,150 should be taken seriously. Above these resistances and the Fibonacci retracement (38.2 per cent) at 11,227 the DAX could continue the mid-term upward trend.

Below the mentioned intersection-resistance further price losses would be likely. In this scenario the retracement (61.8 per cent) at 11,495 could be tested. Further supports are the lower trend line of the trend channel at 10,060, the price level at 10,000 and finally the mid-term upward trend at 9,970. This trend line has been regained at the beginning of October.

German stock market DAX on daily basis

Source: IG charts

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