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DAX consolidating huge gains but is it stretched?


DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)

 

DAX futures are just consolidating back a touch this morning after a huge bull session yesterday.

Big moves will often be followed by corrective slips and this could be one of those again. The DAX has gone a long way in a short space of time and some initial profit-taking could easily be seen.

Technically the market is very strong though, however with the market trading entirely outside the Bollinger Bands there is a suggestion that the market is overstretched near term.

The Marabuzo line of yesterday’s bull candle is at 13,400 and is an initial gauge today.

Holding above that would still  be bullish, otherwise the market could begin to drift back.

  • Today’s initial low of support if 13,435, whilst yesterday’s traded low at 13,311 is further support.
  • Yesterday’s all-time high at 13,486 now marks the resistance.

 


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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.