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DAX bulls continue to struggle higher in the recovery

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

Despite solid gains on Wall Street, the recovery on DAX futures is relatively slow and truncated.

Posting the higher low at 12,062 was key on Wednesday but the bulls stuttered yesterday in posting a minor retracement candle.

Today’s early gains have so far failed to ignite and the resistance of Thursday’s high at 12,477 remains intact.

There is a recovery underway but the bulls are going to have to earn it.

Momentum indicators are looking to tick gradually higher, but these are stunted gains.

Trading above the 23.6% Fibonacci retracement of the 13,596/11,900 sell-off at 12,300 means the recovery is on track for the 38.2% Fib level at 12,548.

The hourly chart shows a gradual improvement and more positive configuration on the momentum indicators with RSI supported above 40 and MACD lines above neutral.

  • Yesterday’s low at 12,267 is a gauge near term bulls will watch today, with 12,062 key support.
  • Initial resistance at 12,416 from today’s early high, but 12,477 now prevents a rebound to 12,642.

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Research Risk Warning

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.