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DAX consolidating but a mild bear bias remains


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

The negative daily candlesticks continue to build as a consolidation leans towards  corrective bias on the DAX.

This comes with the market continuing to gravitate around the 13,200 pivot.

The question is whether the cluster of bear candles points towards an underlying weakness in a market that is effectively being propped up by the stellar gains on Wall Street.

The negative candles show that selling pressure develops throughout the session and again this was the case yesterday.

It also means that early support today may be questionable again.

The momentum indicators are still holding up well on the daily chart, but it is interesting to see the negative bias shows more on the hourly chart.

  • Despite this though, the support at 13,142 has held now for the last couple of sessions and the bulls are hanging on.

The hourly RSI seems to be limited around 60 but if the bulls can pull above here in a sustainable way then it would be a sign of an improvement in sentiment.

  • For now this is really simply just a consolidation between 13,142/13,300, with a market searching for direction.
  • Below 13,142 opens the downside towards the 13,000 pivot, whilst a move above 13,340 opens 13,421.

 


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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.