DAX with a new all-time-high

The German stock market has continued the recovery since mid-October. The highlight was a new all-time-high at 10,083 last week. Most important is the new buy signal on mid-term basis. 

Source: Bloomberg

The closing price above the psychological price level at 10,000 was the signal for further increasing prices. The first target price is the former trend line at 10,590. Regarding the correction phase from mid-September to mid-October the next target price is at 10,830.

The trading strategy with the Bollinger bands has generated a new buy signal on weekly basis. The DAX has closed above the upper band at the end of November. A sell signal would be generated below the lower band at currently 9197. The increasing weighted moving average (40 weeks) at 9540 shows an intact mid-term upward trend.     

The German stock market is not yet overbought. But for this case the last highs at 10,016/10,048 and the trend line at 9794/9795 could be tested. 

German stock market DAX on weekly basis

AUM_Daxchart 081214
Source: IG Charts

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.