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DAX bulls looking to break back higher once more


DAX Xetra (cash index)

As trading ramps up for Tuesday’s session, the bulls are beginning to warm to the task of breaking the recent trend lower.

The market rolled over at 13,204 a couple of weeks ago and has been posting lower highs and lower lows ever since, however there are signs on momentum indicators that this could be about to turn around.

This morning’s early move to the upside is now testing the two week downtrend  which would see confirmation of a breach on a move above yesterday’s high at 12,846.

It is interesting to see the momentum indicators turning higher, with the crossover buy signal on the Stochastics the first to find traction to the upside once more.

The key is to whether this is a lead indicator amongst eh momentum signals, with the RSI ticking back higher around 50 and the MACD lines seemingly bottoming.

  • A close above 12,846 would confirm the near term sellers would have lost control and then open the old overhead supply between 12,918/13,040 as a near term resistance area.

The hourly chart reflects an improvement in momentum is building and if the hourly RSI can hold sustainably above 60 and hourly MACD lines hold sustainably above neutral then the outlook will continue to improve.

  • There is a minor pivot around 12,800 which will also be seen as initial support today, whilst support at 12,692 needs to hold otherwise the selling pressure will resume.

 


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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.