DAX is back on track

The German stock market has generated a new buy signal on daily basis. The trend line at 9794/9795 was broken up significantly. 

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Source: Bloomberg

This was a very important step for the further development. The psychological price level at 10,000 is the next target price. Above this mentioned level the former upward trend line at 10,280 could come into focus.

Regarding the very positive performance in the recent weeks the DAX is now overbought on daily basis. The German stock market closed above the upper band of the indicator Bollinger bands. The oscillator Relative Strength Index (RSI) with the parameters 30 and 70 shows an overbought situation too.

A correction is possible at any time. In this case the trend line at 9794/9795 could be tested. The increasing weighted moving average (200 days) at 9442 and the trend line at 9425 are further important supports. 

German stock market DAX on daily basis

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Source: IG Charts

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