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DAX bulls hanging on but the pressure is mounting

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

The mixed outlook continues on the DAX, but the bulls are now finding themselves under increasing pressure to hang on to a positive outlook.

Within this the support at 13,125 remains key, but the bulls will be heartened this morning that early weakness has been bought into around the old support band 13,125/13,200.

However the momentum indicators are creaking now, with the RSI hanging on to 50 and the MACD lines threatening to cross lower.

What could also be key is that the opening gap lower has now been filled at yesterday’s low, however if the market closes below this gap at 13,267 today then the positive outlook will be slipping.

This could then begin to shift the emphasis away from buying into weakness.

The hourly chart shows the hourly RSI failing at 60 and MACD lines under neutral suggesting deteriorating momentum.

A downtrend has also formed in recent days as intraday rallies are being sold into.

  • The near term importance of the support at 13,125 is significant as a breach would really begin to reflect a stark deterioration in the outlook.
  • Resistance is at 13,352 and then 13,385 is key near term.

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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.