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DAX consolidating between key Fib levels


DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)

It is interesting to see that the recovery on the DAX futures has just lost its way in the past few sessions.

  • That it is stalling around the 38.2% Fib retracement of the sell-off at 12,548 is also interesting.
  • The market is now trading between the support of the 23.6% Fib level at 12,300 and the resistance of the 38.2% Fib level around 250 ticks higher.

A succession of contradictory candles in recent sessions is leaving traders with an uncertain feel to the move.

However there is still a recovery feel to the momentum indicators with the Stochastics and RSI gradually tracking higher and MACD lines threatening to cross higher.

Today’s early drop back in the wake of downside on Wall Street last night is doing little to really impact on the outlook, with the hourly chart still fairly neutrally configured.

The support of yesterday’s low at 12,325 will become increasingly key near term as a failure would begin to suggest that bulls have lost the recovery.

For now this is a consolidation within the recovery, however breakouts of these two Fib levels will drive the net direction.


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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.