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DAX bulls look to buy weakness following breakout


DAX Xetra (cash index)

After several days of consolidation, yesterday’s decisive upside break has re-opened the market for continued gains.

The mini range of 115 ticks implies an initial target of 13,150 with the next resistance of the old January lows around 13,140 already being tested today.

There is continued strength in the momentum indicators to suggest that corrections remain a chance to buy within the six week uptrend channel.

There is now breakout support at 13,034 today as the market has slipped back a touch in early moves, however this will likely be seen as an opportunity for the bulls.

Hourly momentum configuration remains strong although the hourly RSI is slightly stretched over 70  and this could induce an initial technical correction today.

However the buyers certainly do not seem to be done yet and any weakness within the trend channel will be pounced upon.

  • Look for support to form around 13,034 and the buyers will be in control above 12,918 whilst the trend support also comes in around 12,920 today.
  • The next upside resistance above 13,140 is at 13,300.

 


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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.