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DAX bulls finally breaking higher of the consolidation


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

Finally the bulls are finding traction to breakout to the upside after a period of consolidation.

This comes with this morning’s upside push above the resistance at 12,530/12,550 and if it is accompanied by a closing breach it would complete a range breakout.

This would then imply an upside recovery target of 12,780.

It would also mean that trading clear of the 38.2% Fibonacci retracement of the sell-off opens the 50% Fib level at 12,748.

Momentum indicators are now tracking decisively higher with the Stochastics strongly configured and the MACD lines rising after their bull cross.

The bulls will now start to look at near term drops as a chance to buy, with the hourly chart showing support now 12,500/12,529.

  • The initial resistance is 12,642 before the overhead supply of the old key support at 12,731.
  • Support at 12,274 is now increasingly important on a near to medium term basis as a key higher low.

 


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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.