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DAX bulls continue to see weakness as a chance to buy


DAX Xetra (cash index)

The recovery continues to build as the run of bullish candles racks up and the market pushes higher within a recent uptrend formation.

Within this, intraday corrections remain a chance to buy.

The market has also left a strong band of support now around 12,100/12,130 with a key higher low left as a marker for the bulls at 12,040.

Momentum continues to build with the MACD and Stochastics lines pulling decisive recoveries and the RSI towards 50.

There is also further upside potential in this move with the RSI tending to pull into 55/60 during recovery phases of June/June/August.

  • Next resistance comes in around 12,300/12,400 which looks set to be tested now.

On the hourly chart there is a consistent positive configuration on momentum and the rally is set within an uptrend channel which is supportive this morning around 12,120.

  • Buying into weakness, initial support is in the near term band 12,160/12,200 this morning.
  • A breakout above 12,400 opens 12,600.

 


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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.