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DAX bulls suffering again amid negative technicals

DAX Xetra (cash index)

Traders on the DAX face uncertain times as the market has again gone into reverse again this morning with early selling.

It had looked as though the outlook had taken a turn for the positive as the bullish engulfing candle from Monday was followed by a sharp open higher yesterday.

However an intraday decline into the close saw the opening gap at 12,110 closed, with the market ending the session all but at the low of the day.

Today’s opening gap lower again now increases the downside pressure again and a negative close below 12,090 (Monday’s bullish close) would be a negative development.

However, on a near to medium term basis, as long as the support of Monday’s low at 11,830 remains intact then the potential for a recovery will still be on as the bullish engulfing candle would be a dominant chart feature.

Despite this though, the momentum indicators are struggling again with the RSI now failing under 40 and the MACD lines still tracking lower.

  • The hourly chart shows the hourly RSI again failing at 60 and the MACD lines rolling over around neutral which suggests that the bears are back in control
  • The support around 12,300 could again be a key factor to watch near term, whilst resistance of the pivot at 12,284 is growing ever stronger.
  • Below 11,948 opens 11,830.


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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.