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DAX 30: Trading within an ascending channel

Since the beginning of the year the index gained more than 2.0% but last week rose in excess of 1.5% and is in a bullish phase since the mid-August.

Last week the index rose with a wide range and closed near the high of the day, in addition managed to close above the previous week high, suggesting a strong bullish momentum. The 10-week moving average should act as a good dynamic support for the index.

The stochastic is showing an overbought market and is displaying a weak bearish momentum.

Expecting an upward move to a weekly resistance at 11,124 (scenario 1) on a break above the previous week high at 10,727 however a bounce from the weekly resistance at 11,124 may drag the index down to a key level at 10,457 (scenario 2).