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DAX again up against selling pressure into intraday rallies


DAX Xetra (cash index)

DAX rallies are a chance to sell as the technical outlook remains corrective and points towards a retest of recent lows.

  • The overhead supply around 11,000 seems to have put paid to last week’s recovery which has left a high at 10,988.

The filled gap in Friday’s session has been followed by a negative candle in yesterday’s session and the hourly chart there is a growing sense of a lower high now in place at 10,903 as intraday rallies are once more being sold into.

Daily momentum remains negatively configured on both a medium term and latterly a renewed near term outlook.

This is shown on the hourly chart where the hourly RSI failed at 60 and MACD lines have turned lower again.

Subsequently any unwinding move this morning is likely to come up against resistance that houses sellers once more.

  • Initial support is at yesterday’s low at 10,700 with a retest of the 10,585 is now likely to be seen.

The main caveat to this will come outside technicals with the FOMC decision tomorrow and a potential dovish climb-down which could induce a sharp recovery on Thursday.

However, for now the negative outlook for the DAX continues.

 


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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.