DAX: The last intersection-resistance

Following the successful test of the support at 11,000 the DAX has started a continued countermovement.

bg_dax_1369829
Source: Bloomberg

Due to this two former supports could be regained.

Based on the high at 12,400 from April this year we have drawn three downside trend lines. The DAX has broken up two of them. But the third and last one makes some problems. The mentioned trend line at 11,670 and the Fibonacci retracement (23.6 per cent) at 11,692 are forming an intersection-resistance. The DAX would generate a new buy signal above this level on closing price with a technical target price at 12,000.

Currently the DAX is trading in the direction of the trend line at 11,454/11,467. Below this price level the next support is at 11,250 (Fibonacci retracement).

German stock market DAX on daily basis

DEM_DAXchart 070815
Source: IG charts

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