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Bulls celebrating as G20 spikes the DAX higher


DAX Xetra (cash index)

What a turnaround!

The negative sentiment that had been seeping back into the DAX in the past week has been smashed out of the water this morning as global equity markets have taken a significant risk positive tone from the G20 at the weekend.

The DAX has now got a huge bullish gap higher that is open at 11,315 as the market has jumped almost 300 ticks higher this morning.

Whether this gap will be filled is now the question, but it does look like a breakaway gap (which can often be seen at the beginning of a strong market move).

  • The move back above the pivot band 11,400/11,460 is also an important step for a recovery (this is now a basis of support in the coming days).

The momentum indicators are now ticking strongly higher with the move, as the RSI is rising above 50, whilst MACD and Stochastics are also ticking positively too.

It does all suggest that weakness will now be seen as a chance to buy.

  • The resistance of the November highs 11,566/11,690 are now the key test, whilst there is also crucial long term overhead supply between 11,725/11,865 that needs to be overcome for this to be a sustainable recovery.

For now the bulls are sitting happily though.

 


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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.