DAX Weighed Down below 11,000 within Correction

<p>June 15, 2015 – Germany 30 (daily chart shown below), representing the DAX index, continues to be weighed down within the current correction from its […]</p>

June 15, 2015 – Germany 30 (daily chart shown below), representing the DAX index, continues to be weighed down within the current correction from its April all-time high.

Since that high of 12,428 in early April, the index has fallen by more than 12%, well more than a typically defined 10% correction, to last week’s three-month low of 10,864. For the first time since February, the DAX traded below the key 11,000 support/resistance level last week.

After rebounding towards the latter part of last week to a high of 11,452, the index once again retreated on Friday and has tentatively continued its decline into the current trading week by falling back below the 11,000 level.

Germany 30 DAX Daily Chart

 

After having broken down below a key uptrend support line in early June and then continuing its downside correction into mid-June, the short-term trend momentum has turned significantly bearish within the past month.

Any major downside move under 11,000 could push the index back down towards its 200-day moving average with a major bearish target around the 10,050 support area, which was a key resistance level before the January breakout to new highs.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.