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Bulls in control as DAX continues to consolidate the breakout

DAX Xetra (cash index)

Inching towards the end of the week, the DAX is still edging higher and holding on to the breakout above the 11,371 previous range resistance suggests the outlook is positive.

The breakout implies around 410 ticks of further gains in the coming weeks towards the long term pivot band 11,725/11,865.

Momentum indicators are broadly positively configured (RSI above 60, MACD lines tracking higher again above neutral, Stochastics strong above 80), the bulls are tentatively pushing forward.

Holding on to the breakout above 11,371 will retain the positive outlook whilst weakness is now a chance to buy.

  • The hourly chart shows strong configuration across momentum indicators and a band of support between 11,265/11,371 that will be used as a near term “buy zone” but the bulls are not giving too much up yet and are still positioned for continued upside.
  • The big eight month downtrend resistance comes in at 11,535 today and is the first real test for the bulls, whilst the December high comes in at 11,565.

The outlook will be a touch more mixed should this week’s ow at 11,245 be breached as support but for now the outlook is positive.

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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.