DAX picture with some scratches

Since the end of August the chart picture of the German stock market has not been looking very good. 

bg_dax_1369829
Source: Bloomberg

At this time both the midterm upward trend line at 9720 and the support at 9425 were broken down due to the situation in the eastern Ukraine.

From the high at 10,048 (mid of June) the DAX lost more than 1,000 points to the low at 8904 at the beginning of August. The support at 8952/8982 has been tested on the closing price. Targets are now the mentioned trend line at 9425 and the moving weighted average (40 weeks) at 9516.

The current situation would improve above the former upward trend line at 9860 and the new resistance at 9794/9795 A new buy signal would generate above the all-time-high at 10,048. 

German stock market DAX on weekly basis

DEM_Daxchart21082014
Source: IG Charts

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