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DAX bulls increasingly flailing amidst consolidation


DAX Xetra (cash index)

The DAX remains at a near to medium term crossroads as the market hangs on to the old pivot around 12,600 but the bulls are unable to break free.

In each of the past few sessions the buyers have made intraday attempts at breaking above the near term pivot around 12,700 but failed on each occasion.

  • Resistance from the old uptrend channel may come in around 12,770 now but the market has reverted to failing around the 12,700 pivot in posting a run of failure candles.

The near term outlook remains dependent on the run of higher lows in the past week as the hourly chart shows this mini uptrend is now supportive at 12,580 this morning.

The daily momentum indicators are just losing their way in recovery (as suggested by the recent daily candlesticks) whilst the hourly chart also points to a rolling over of sentiment.

The hourly RSI failing at 60 is a concern for the recovery, whilst the mini-uptrend rises towards 12,600 today and a decisive breach of yesterday’s low at 12,586 would suggest the bulls are under increasing pressure.

  • The key support remains the reaction low at 12,493 with 12,545 an initial support.
  • Resistance is building between 12,700/12,739 as the consolidation continues.

 


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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.