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Can the DAX finally close out above key resistance?


DAX Xetra (cash index)

The market still awaits a closing breach of the resistance at 12,600 as yet again another attempt on Friday fell just short.

Although the market closed decisively higher the candlestick on the day showed the bulls could only muster an 8 tick gains from the open to the close.

This reflects a continued lack of conviction around these levels.

Once more this morning, the market is trading above 12,600 in the early moves, but with resistance in the band 12,600/12,647 in the past couple of weeks and stretching back to February.

The daily momentum indicators are ticking higher in strong configuration and the hourly chart is also strongly positioned but this is still a market moving with the hand brake on.

There is a gap still open at 12,500 from Friday but the bulls are setting their sights higher for now.

An intraday move above 12,647 in addition to a close above 12,600 would be ideal, especially with a strong daily candle.

If this were the case there could be a mini explosion to the upside.

  • It would also then open 12,745 as next initial resistance before 13,000 comes back into view.
  • The risk is that yet again the market fails to close out above 12,600 whilst a negative candle today would increase the pressure for a corrective slip to fill the gap at 12,500 and a retreat back to what is increasingly a pivot at 12,460.
  • Can the bulls make the break?

 


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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.