DAX on the way of improvement

The current technical situation is very interesting.

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Source: Bloomberg

The German stock market could continue the recovery. Only one resistance is standing in the way.

This is the lower trend line of the downward trend channel at 10,170. This resistance should be broken up. The 40 weeks weighted moving average (WMA) at 10,832 would be the target price.

The moving average has turned downwards significantly. This means the end of the mid-term upward movement. Due to the strong seasonal pattern (October to December) the DAX could reach the mentioned trend indicator on short-term view.

Below the psychological support at 10,000 and the mid-term upward trend line at 9.890 the lower limit of the former trading zone at 9.000 would be the next target.

German stock market DAX on weekly basis

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Source: IG charts

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