FRANKFURT (dpa-AFX) – Buoyed by new records on Wall Street, the German stock market received a slight boost on Tuesday. The DAX closed 0.36 percent higher at 23,611.33 points. However, it once again failed in its attempt to break above the 21-day moving average, which is an indicator of the short-term trend. Meanwhile, the MDAX index of medium-sized companies gained 0.37 percent to 30,265.43 points.
The DAX lacks the strength for a decisive breakout, commented analyst Frank Sohlleder from broker Activtrades. This could increase investor nervousness and lead to further profit-taking. However, market analyst Jochen Stanzl from broker CMC Markets believes that the fact that the leading index is not falling more sharply despite seasonal weakness is a sign of its inner strength. The window of opportunity for an autumn correction is slowly but surely closing.
Stanzl attributed the DAX’s current inability to keep pace with…
