DAX Xetra (cash index)
The bulls have managed to hang on to gains made in yesterday’s session as the market has picking up again, however there is still a ranging look to recent market moves.
In the past week there has been a feel of consolidation as the market has traded around the flat 21 day moving average and momentum indicators have been more neutrally configured.
There is now a range that has formed between 12,162/12,455 and as the market has swung higher over the past couple of sessions, the hourly chart shows that there is further upside potential for maybe 100 or so ticks.
However the hourly RSI is beginning to stutter this morning around 60 which is an area where the bulls are likely to begin to struggle in a ranging market, whilst the Stochastics are already around 80.
There is a lack of conviction in the early moves this morning too.
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.