DAX: Waiting for the trend reversal

The German stock market has been showing a technical improvement since the referendum in Great Britain.

Source: Bloomberg

Due to this the DAX jumped over the psychological price level at 10,000. The next resistance is the trend line at 10,100.

Above this level the next resistance is waiting at 10,520. We see the primary downward trend in the weekly chart. A closing price on weekly basis would be necessary to overcome this technical hurdle. In this case the DAX could continue the current upward movement to the former mid-term upward trend line at 11,200.

But the falling weighted 40 weeks moving average (WMA) could cause some problems. Furthermore the mentioned and familiar trend following indicator shows downwards. Another test of the mid-term upward trend line (since March 2009) at 9305 could be possible.

German stock market DAX on weekly basis

Source: IG charts

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