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Bulls coming under pressure as DAX slips below support


DAX Xetra (cash index)

The drift of the past few sessions is now starting to be a move that the bulls need to take notice of as the support of the breakout at 11,556 has been broken.

This move still looks to be a near term unwind any overstretched momentum of the breakout and is likely to be a chance to buy.

Given the strength of the uptrend channel of the past two months, the outlook will remain positive and whilst the support band 11,370/11,440 remains intact there is little really for the bulls to be overly concerned by.

  • From a near term perspective, the breakout gap at 11,524 has now been “filled” and if it is “closed” then there could be further slip back into a test of the 11,370/11,440 support band.
  • The channel low comes in at 11,225 today.

Momentum indicators are slipping back now but all remain in positive medium term configuration.

The RSI is still above 60, whilst Stochastics are still above 80.

The hourly chart shows this is a drift back to support of a four week uptrend channel, whilst the hourly RSI is around 40 and MACD liens around neutral.

This is likely to be the source of the next 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.