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Another early rally fails under 11,000 but are DAX bulls ready?


DAX Xetra (cash index)

The recovery of the past three weeks has been consolidating in recent days as the overhead supply and resistance around 11,000 has become a ceiling.

It is interesting to see that the early rebound today on a risk rally has once more failed under the 11,000 resistance.

  • It seems as though this is a key crossroads that the market is struggling to pass however, equally the market is holding above support not only in the band 10,585/10,700 but also above the recent lows at 10,786.

Momentum is positive with the RSI above 60, MACD lines tracking higher and Stochastics above 80 and interestingly, the 21 day moving average has now turned higher for two consecutive days for the first time since August.

  • A closing break above 11,000 would be a six week high but also effectively complete a base pattern.

The importance of this resistance is growing by the session.

  • The hourly chart shows initial gap support at 10,886 which remains open from yesterday’s high.

 


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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.