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DAX buyers still supporting slips in the recovery


DAX Xetra (cash index)

The outlook changing impact of the recent breakout remains on track.

A trend higher of the past eight sessions remains intact and the bulls have still got a grip on the recovery despite a negative candle from yesterday.

Having broken out through the overhead supply between 12,400/12,500 the market is now eyeing a challenge of the resistance of the old 12,600 pivot but shied away yesterday on an initial test.

Posting a bear candle yesterday is a blot on the copybook but has not yet derailed the recovery as the early move higher suggests buyers are still prepared to come back in.

The trend support is at 12,460 whilst the momentum indicators are still in their recovery configurations.

  • This suggests that weakness remains a chance to buy for continued pressure on 12,600.
  • A closing breakout above 12,600 opens 12,738 initially as a continuation of the recovery trend.
  • The hourly chart reflects the improving momentum whilst there is a band of support 12,435 (near term pivot) and up towards 12,500.

Any slip to unwind the hourly RSI towards 50 and a subsequent consolidation is a chance to buy.

 


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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.