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DAX bulls continue to build for the recovery


DAX Xetra (cash index)

As the market has broken higher in the past few sessions the bulls look to be gaining control once more.

However there is still work that needs to be done to suggest the market is bullish again.

The late February rally high at 12,601 needs to be breached which would breach the key lower high in the selling phase.

A six week downtrend was broken last week and momentum indicators are picking up but they are still needing to push into more bullish configuration otherwise the risk is that this could still just be a bear rally.

  • With the recovery over the past week there is now a new uptrend formation seen on both the daily and hourly chart, whilst the hourly chart also shows the pivot at 12,284 now becoming a good basis of support.
  • The opening gap higher today has filled Friday’s intraday high as the initial rally has been tempered this morning but the trend support comes in around 12,325 and corrections are now being bought into.
  • Initial resistance is today’s early high at 12,455 and the bulls will be eying the resistance overhead between 12,500/12,600 (broadly the 38.2% Fib of the sell-off and the February high.

 


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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.