DAX on the way to the top

It hadn't been an easy task, but the German Stock market was successful at it.

Source: Bloomberg

The intersection-resistance was broken up. As a result the DAX has been generated a new buy signal.

The psychological level at 11,000, the upper trend line of the downside trend channel at 11,005 and finally the 200 days simple moving average (SMA) at 11,100 made some problems in the recent weeks.

Currently the DAX has reached the next resistance on daily basis. It is the Fibonacci retracement (38.2 per cent) at 11,224. Above this level on closing price the Retracement (23.6 per cent) at 11,689 and then the next psychological level at 12,000 would be the technical target prices.

After the recent strong performance the German stock market is slightly overbought. A correction in the direction of the former resistances is possible.

German stock markets DAX on daily basis

Source: IG charts

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