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. 

bg_dax_122082
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

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