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DAX builds near term recovery but the big test is to come


DAX Xetra (cash index)

Moves on the DAX in recent sessions have helped to build a sense that a recovery could be brewing.

However, this near term move needs to now start to push decisively forward and make a key move on the resistance of the overhead supply around 11,000.

  • For now, using the near term breakout above 10,700 as a basis of support is encouraging for the continuation of the recovery.

This is backed by strong moves through the momentum indicators, with the Stochastics rising strongly and the MACD lines accelerating higher.

The RSI above 50 is also encouraging.

This all points to near term corrections being a chance to buy for now.

  • The hourly chart shows that 10,800 is initially a basis of support and a decisive move above 10,910 today would be a good indication that the run will continue towards the 11,000 old key basis of support through October/November which is now overhead supply.

 


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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.