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Another breakdown on the DAX as selling continues

DAX Xetra (cash index)

Another bearish breakdown on the DAX this morning as the negative outlook continues to drag equities lower.

  • A move below the previous December low at 10,585 continues the bear move towards the long term target at 10,150 from the huge top pattern.
  • The next support comes in at 10,400.

Momentum indicators remain negatively configured as the MACD and Stochastics slip ever further into bearish positioning, whilst the RSI is falling but still a shade above 30 suggesting there is still downside potential.

  • There is a gap still open at 10,750 whilst the reaction low at 10,700 from earlier in the week means that there is a band of resistance overhead at 10,700/10,750.
  • Initial resistance is 10,585 (all but today’s traded high too) and yesterday’s reaction high at 10,686.

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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.