Live Chat

DAX bulls stand on the brink of a breakout


DAX Xetra (cash index)

In the wake of renewed buying pressure yesterday, the DAX remains on the brink of a bullish medium term upside breakout.

Resistance at 12,460 of the key March high is coming under growing pressure as the recovery continues to build on the series of higher lows of the past couple of weeks.

  • The market is now leaving behind the pivot support around 12,160 with another higher low at 12,256 and the opening gap higher this morning has had a first proper look at the 12,460 resistance.

The opening gap has already now been filled and although pulling back from an initial break of less than a handful of ticks, the bulls will be looking to post a closing breakout to put pressure on the big resistance at 12,600.

Momentum indicators on the daily chart continue to make headway in a recovery with the RSI, Stochastics and MACD lines rising at two month highs.

On the hourly chart there is a positive configuration across momentum indicators and weakness continues to be bought into.

  • There is now a near term buy zone for any intraday slip into the 12,350/12,415 initial support area.

 


Ready to start trading?

Open an Account Try Demo

  • Archive

  • Topics

  • Videos

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.