Live Chat

DAX back in recovery mode, but will it last?


DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)

The reaction to today’s early gains could be key for the near term outlook on the DAX.

Rallies have continually been sold into in recent days leading to pressure on the key support at 13,125 but the early rebound today has broken a downtrend on the hourly chart improves the outlook.

The next step is to close a downside gap that has been left open over recent sessions.

The move back above 13,267 now needs to be followed up with a close above today.

If this can be achieved then the bulls can begin to derive more confidence.

As things stand the daily chart is also showing a bullish candle too, whilst the RSI is back above 50 and the Stochastics decline has slowed.

More needs to be done with a follow up positive candle tomorrow too, but the selling pressure seems to have been arrested for now.

If the market again fails intraday and drops back then the pressure on support at 13,125 will simply grow again.

  • The hourly chart shows initial support at 13,215.
  • Resistance is at 13,308 with 13,353 and then 13,385 being key.

 


Ready to start trading?

Open an Account Try Demo

  • Archive

  • Topics

  • Videos

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.