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DAX bulls position for breakout but resistance remains for now


DAX Xetra (cash index)

Can the DAX join other major global markets in breaking higher?

The range that has broadly formed above the medium term pivot at 11,000 is seeing its resistance at 11,371 eyed, but as yet a breakout is not forthcoming.

Looking at the momentum indicators though there is a sense that a breakout is imminent.

The Stochastics continue to climb towards strong configuration, whilst the MACD lines are ticking higher.

Given the US public holiday yesterday, it is difficult to read too much into a small ranging candle with a dead flat close.

However, the bulls have had a go this morning and pulled back again from 11,355.

The hourly chart is positively configured on momentum suggesting weakness is a chance to buy.

  • There is support at 11,260 initially which is holding this morning whilst there is a mid-range pivot at 11,215 which is also a gauge for sentiment.
  • A close above 11.371 opens the upside once more with the December high at  11,567 and the long term pivot band 11,725/11,865 being the next basis of resistance.

 


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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.