DAX Xetra (cash index)
The run of negative candles continues on the DAX.
In four of the past five sessions there has been considerable disappointment into the close whereby the market closes either strongly lower and/or well off the highs of the day.
Long lower shadows on the candles in recent sessions show that the sellers remain in control, whilst the succession of lower highs in the past few weeks (that has now formed a four week downtrend) show that intraday gains continue to be seen as a chance to sell.
That suggests that today’s early move higher needs to be treated with considerable caution.
There is still a corrective configuration to momentum with the Stochastics tracking lower, RSI under 50 and MACD lines losing impetus in a rebound.
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.