DAX: Three resistances in focus

Shortly before Easter the German stock market has reached an important resistance zone.

bg_dax_122082
Source: Bloomberg

This consists of the psychological price level at 10,000, the falling weighted 200-day-moving average (WMA) at 10,043 and the Fibonacci retracement (50 per cent) at 10,068.

The DAX should be able to overcome the mentioned resistances on closing price. In this case the upper trend line of the downward trend channel (since April 2015) at 10,280 would be the technical target price.

In the scenario that the German stock market is not able to overcome the three resistances a correction in the direction of the Fibonacci retracement (61.8 per cent) at 9743 and the exponential 38-day-moving average (EMA) should be considered.

German stock market DAX on daily basis

DAX
Source: IG charts

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