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DAX bulls disappoint as the breakout hits the skids

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

The bulls continue to strain for a decisive breakout without managing to finally break the shackles.

Yesterday saw the market trading higher for much of the session but ultimately closing with a mildly disappointing close again back below the 38.2% Fibonacci retracement of the big sell-off at 12,548.

There is a recovery outlook on the momentum indicators which continues to point towards buying into weakness and an eventual upside move, however there is still something holding the bulls back.

The hourly chart shows a positive configuration and the support to watch today is at 12,475 which was a reaction low from yesterday.

The early drop back this morning continues this air of disappointment about the breakout and this would be increased should the market now begin to fall below 12,475.

  • It could be that this continues to be part of the recovery process, with the key latest higher low at 12,274 so another higher low above there would still constitute a positive development within the recovery.

However casting an eye across the Atlantic to Wall Street and how the bulls are storming higher there, it adds to the disappointment for the bulls.

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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.