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Can the bulls break resistance and push above 13,000 again?


DAX Xetra (cash index)

The generally positive appetite to risk across financial markets is helping to pull equities higher and this is lifting the DAX back to test resistance once more.

A late May corrective move on the DAX has abated and now the market is beginning to make higher lows and higher highs within a growing mini uptrend channel.

This all means that the market is again putting pressure on the resistance around 12,918/12,925 this morning.

A closing breakout above this week’s high of 12,925 would open for further gains in a recovery for initially 13,040 but also the May high at 13,204 comes back into range again.

Momentum indicators on the daily chart are ticking higher with RSI and Stochastics leading the market higher, but if the MACD lines can also turn higher this would be a strong signal.

  • Yesterday’s low at 12,729 becomes a key higher low if the market breaks above 12,925 whilst the hourly chart shows momentum indicators are positively configured now.
  • Weakness looks to be a chance to buy, with the trend channel support today at 12,780.

 


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Research Risk Warning

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.