DAX has lost a little bit of power

The performance of the German stock market has been disappointing recently. The DAX has lost a little bit of momentum. The problem is the all-time high at 12,221 from March.

Source: Bloomberg

Currently the German blue chips are trading in a sideways movement. The lower limit at 11,861/11,853 has been tested in the recent weeks. The DAX could generate a new buy signal above the upper limit at 12,221. The target price is the former upward trend line at 12,585.

Below the mentioned trend line at 11,861/11,853 and the 21-days-moving average (EMA) at 11,920 this could be the start of a new correction. The next supports are the 23.6 per cent Fibonacci retracement at 11,600 and the trend line at 11,454/11,467.

German stock market DAX on daily basis

Source: IG Charts

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