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DAX bulls still straining to pull clear of resistance

DAX Xetra (cash index)

The bulls remain on the brink of a decisive technical improvement, but still just cannot make the break.

Friday’s daily candlestick reflected a struggle of a session and the market seems to be restricted once more this morning.

Resistance at 12,460 was broken by Friday’s intraday gains, even if the market could not sustain the move into the close.

Early gains are once more testing higher and a decisive closing breakout above 12,460 would put the market directly in the line of testing the crucial February high at 12,600.

With the Average True Range at 185 ticks (although this is now falling) there is the potential for an imminent test of 12,600 should the bulls take control.

For now though this is an improving market that is straining to move higher, but the hand brake is still on.

Despite this, the medium term improvement on the momentum indicators is continuing and suggests that weakness remains a chance to buy.

  • The hourly chart shows the support continuing to build at higher levels with 12,410 a near term pivot, whilst the bulls remain in control of this move higher above the 12,255 and 12,200 recent reaction lows.
  • Friday’s high at 12,524 is initial resistance now.


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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.