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DAX bulls are shaping for an upside breakout

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

The bulls reacted positively as the session ran on yesterday and the recent consolidation of the past week is once more threatening to the upside.

This comes with the opening gains this morning and a move above the initial resistance at 12,530.

Can the bulls sustain for a closing breakout?

There is a gap open at 12,435 this morning, however there are couple of levels that still need to be watched, with the two Fib levels of that recent sell off still a key factor.

The 38.2% Fib at 12,548 is still a barrier to gains that needs to be overcome.

With three successive positive candles there is a sense that the bulls are ready to make a move.

This is helped by the momentum indicators which continue to improve, as the MACD lines have bull crossed higher and the Stochastics begin to find real traction to the upside.

  • A close above 12,548 would pressure the 12,644 resistance that is another key level to watch to the upside, a breakout here would really engage the recovery.
  • Support at 12,390 and 12,328 with 12,274 now key.

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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.