DAX with technical damage

The German stock market could not break up the resistance at 9795/9794 last month. 

bg_dax_892862
Source: Bloomberg

This was the beginning of the current correction. Since Mid of September the DAX has lost more than 500 points.

Due to the decreasing prices we see some technical damage in the short-term chart. The supports at 9631/9647 and at 9425 were broken down. Currently the DAX is testing the Fibonacci retracement at 9345. Below this level the German Blue chip stocks would generate a new sell signal. In this case we see further downside potential to the level at 9027/9070. This is a support on daily basis.

The technical situation does not look very good. But a countermovement is possible. The former support at 9425 would be the new resistance. Above this level the German stock market could reach the mentioned trend line.

DAX on daily basis

DEM_Daxchart02102014_daily_basis
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