DAX Xetra (cash index)
The recovery is tentatively intact this morning as the DAX has consolidated in early moves.
Although the market closed higher on Friday this tells very little of the story where the market closed 170 ticks from the day high down at the low of the session to form a very negative looking candle.
As the momentum indicators have recovered in the past week there has been growing encouragement for the bulls, however this could still simply be an unwinding move that flickers out and is used as a renewed chance to sell.
The hourly chart continues to show intraday corrections are being bought into, and for now the momentum indicators are positively configured to reflect this.
However, the hourly RSI below 40 would be a warning to this position, and already the recovery uptrend is being pressured this morning.
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.