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Bulls running higher but key March highs lie in wait


DAX Xetra (cash index)

The bulls have come back after the weekend with the glass half full which has pushed the DAX to a three week high this morning.

This continues the recovery which had been questioned following Friday’s doji candlestick, but the move has taken the market above resistance of the downtrend channel which is increasingly breaking the corrective phase.

The momentum indicators on the daily chart are leading the recovery as the RSI rises above 50 to ten week highs , whilst the MACD and Stochastics lines are accelerating higher.

This means the market is positioning for a test of the key March highs at 12,460 which will be a decisive technical improvement if it were to be seen.

  • The market is also now leaving behind the pivot around 12,160 which is the basis of support near term now.
  • Initial support comes in the range 12,200/12,290 this morning.
  • A move above 12,460 opens 12,600.

 


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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.