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DAX futures analysis 26/04/2017

DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)


A consolidation is taking hold in front of the ECB but is the DAX due another correction?

The strong breakout to new all-time high ground has started to slow and early moves today are lower.

The concern is that in four of the five breakouts since January (i.e late March breakout was the exception), all have come with a correction just a day or so after the original breakout.

The RSI is at 69 and this is a level that has limited in recent months, although the bulls will point to Stochastics and MACD lines rising with upside potential.

On the hourly chart there is a consolidation over the past day or so and momentum indicators are now unwinding.

  • The support at 12,450 is still a near term level to watch and a breach would open 12,430 and then 12,411.
  • The all-time high at 12,519 is now resistance.

An unwinding move would be a positive for the next bull run higher and I would see corrections as a chance to buy.


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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.