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DAX consolidating on the brink of a crucial breakdown


DAX Xetra (cash index)

The largest negative session on the DAX since 23rd March has now seriously questioned the longevity of the seven week bull run.

An intraday breach of the uptrend channel has continued today and the bulls will need to fight to prevent the market now turning corrective again.

  • Key support in this move is at 12,918 which is the first important higher low within the uptrend and a breach would begin to suggest that the market is rolling over.

Already the RSI has broken an 8 week uptrend, whilst the MACD lines are today completing a bear cross for the first time since late January (when the market began the last huge bear run).

Furthermore, Stochastics are on the brink of giving a sell signal too.

  • The intraday low at 12,930 yesterday shows how the market has already looked at 12,918 as a support, whilst today’s early support shows how the selling pressure has not run lower quite yet.

However hourly momentum configuration has certainly lost its bull impetus and continued failure to reclaim a pivot around 13,034/13,050 will increase the building pressure.

  • Whilst support at 12,918 is intact the sellers will not be in control of the near to medium term outlook.
  • Back above 13,050 would improve the outlook once more.
  • A breach of 12,918 opens 12,827 initially with the 12,600/12,650 old pivot band then also back in play.


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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.