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DAX analysis 06/09/2017


DAX futures (Sept 2017 contract is FDXU7 and expires on 15th Sept, continuation contract is FDXc1)

 

The test of the 11 week downtrend continues as the DAX bulls battle with the negative pressure of geopolitical tensions in North Korea.

Another intraday breach of the downtrend could not sustain the move and a retreat has left a relatively neutral candle on the daily chart.

However it is interesting to see the number of positive green candles building up, despite the fact that the market has trades lower over the past few days.

This suggests that across the trading session, the bulls are winning the battle despite the lower opens.

This seems to be developing again today with the market rebounding from initial opening decline.

It could be argued that if the geopolitical pressure subsides the bulls are ready to take control.

Medium term momentum indicators are at key turning point levels again with the RSI around 45/50, the MACD lines flattening again and the Stochastics losing momentum again.

Technically, the trend is your friend but the buyers seem to be more robust this time.

  • The downtrend is at 12,118 and a close above would be a positive signal.
  • The hourly chart shows support increasingly developing at 12,030 and a move back above the 12,100 pivot would help to generate upside confidence again.
  • The resistance is again also building around 12,200 with yesterday’s high of 12,209.

 


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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.