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DAX bulls looking to build a base of support now


DAX Xetra (cash index)

A pullback following the strong bullish breakout of Wednesday dragged the DAX back towards the new support which the bulls will see as another chance to buy.

The daily chart shows the move was merely an “inside day” within the strength of Wednesday’s bull run but with the breakout now becoming supportive between 12,600/12,650 there is a new underlying demand on the DAX.

Momentum indicators are strongly configured to suggest that corrections are now a chance to buy.

The early morning rebound again today will also add to confidence that this is now the strategy going forward.

Non-farm Payrolls later this afternoon will drive intraday volatility but the key breakout of recent days suggests the one month uptrend channel will continue to pull the market higher.

  • Initial resistance today is at Wednesday’s peak of 12,827 whilst 13,000 will come back into focus should that be breached.
  • A solid base of support around or above 12,600/12,650 will be now seen as a good opportunity for the bulls.
  • This is reflected in yesterday’s low at 12,665 whilst the hourly chart indicators are already turning higher again.

If this continues in the wake of payrolls then the bulls will sit with added confidence.

 


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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.