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Consolidation on the DAX but the bulls still control

DAX Xetra (cash index)

The bulls continue to push forward as another positive session completed yesterday with a close above the psychological 13,000 barrier.

A near term breakout above 12,960 leaves support at a higher level and the market continues to run higher with a sharper two week uptrend within the five week uptrend channel.

  • The bulls will certainly be eyeing a test of the 13,140 next resistance.

Momentum indicators remain positively configured and continue to suggest that near term corrections remain a chance to buy.

The steepness of this two week uptrend means that any consolidation will now potentially break the uptrend and this is what could be about to be see today as the early slip back comes in today’s session.

  • However having broken out above the key 12,600 support the market will look towards building support within the trend channel.
  • The latest breakouts at 12,827 and 12,960 are now supportive.
  • On the hourly chart there is a continuation of the strong momentum as the hourly RSI continues to find buyers returning around 50 and MACD lines are positively configured.
  • The initial resistance at 12,033 needs to be breached having been tested twice in the past two sessions.

The hourly chart does also show that the market has not broken a higher low since 25th April.


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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.