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DAX consolidates as key near term support holds


DAX Xetra (cash index)

The DAX is very much in consolidation mode today after a bout of selling pressure hit the market yesterday.

The negative candle posted yesterday will have got the bulls questioning their control, however as long as the market remains supported above the pivot around 12,160 the outlook of improvement will remain intact.

Daily momentum indicators have improved considerably in the past couple of weeks and although they have slipped back a touch following yesterday’s negative close, there is still this improving outlook in place on a near to medium term basis.

  • A positive candle today would help to bolster support for the pivot at 12,160 and help to calm the nerves of the bulls.

On the hourly chart this recent dip back looks to be a move to just unwind some of the positive near term  momentum and could be a chance to buy now.

  • The hourly chart also shows the basis of support around 12,200.

Geopolitical escalation in Syria would be the big risk to this positive technical outlook.

  • Resistance is at 12,429 which protects 12,460 and the key 12,600.

 


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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.