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DAX bulls face a key moment for a test of the highs


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

After a period of uncertainty the bulls stormed ahead on Friday with a hugely impressive session of strong gains.

Adding 170 ticks on the day and a breakout above resistance at 13,422 to a ten week high the bulls come into this week in the driving seat.

Momentum indicators have swung decisively higher again with the Stochastics swinging up, with MACD lines with a bull kiss and the RSI into the low 60s again.

Can this momentum continue to test the all-time high at 13,525?

The test will be how the bulls react to the breakout above 13,422.

  • There is a basis of support now 13,350/13,422 which is a near term buy zone.

This could come to be tested as the hourly indicators just tick a touch lower this morning.

  • However as long as this support band holds then the outlook for upside to 13,525 will continue.

A failure then suggests that the market would be continuing to play out the ranging market littered with false breaks.

An important moment for the bulls.

  • Initial resistance at 13,469 from Friday’s high.

 


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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.