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DAX building support but can the bulls reassert?


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

The sharp selling pressure has been abated for now but the bulls have still not yet grasped control of the market back again.

Yesterday’s low at 13,008 above the key low at 13,000 was certainly an encouraging response by some punch-drunk bulls, whilst the formation of a bull candle will add to confidence.

However, the move has simply helped to neutralise the outlook and given today’s early reaction lower the bulls still have work to do to regain the ascendancy.

The daily RSI is around neutral, as are the MACD lines.

The bulls will be looking to respond to an early dip, and the hourly chart shows momentum indicators picking up again.

Yesterday’s rebound high failed at 13,136 (which was the old gap support) and this is now a resistance to watch for today and if the buyers can respond to pull a move above this then the near term outlook will be improving again.

So we see two near term levels that will derive near term direction.

  • The support at 13,000 and resistance at 13,135, and moving through these will generate some momentum again.

 


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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.