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Another disappointing session puts DAX uptrend under pressure


DAX Xetra (cash index)

The fall back in the past few sessions has not broken the positive medium term recovery outlook but the bulls will be getting increasingly nervous.

Negative candles have dragged that market back and broken below previous breakout supports between 11,555/11,677, whilst intraday bounces are being sold into.

An early move higher today has been sold into (on the very disappointing flash Eurozone PMIs) and the support of the 2019 uptrend channel at 11,440 is now very much into view.

Yesterday’s low at 11,468 seemed to be a level of note, but now this has been broken as the DAX has sold off this morning.

  • The key breakout band of support to watch now comes in the range between 11,370/11,415.

The concern is that with momentum indicators beginning to deteriorate sharply, this level could now come under threat as the RSI and Stochastics accelerate to new five week lows.

  • Yesterday’s gap lower from 11,596 looks to have been bearishly “filled” now as resistance from today’s high has been left at 11,624.

Hourly indicators are also increasingly correctively configured.

 


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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.