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DAX consolidating the breakout as bulls take a breath


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

 

The key upside break into all-time highs remains on course but is seeing something of a consolidation in early moves on Monday morning.

With such a strong move at the back end of last week the momentum indicators are now positively positioned again and the suggestion is that corrections will be seen as a chance to buy.

  • Subsequently the support band between the old resistance at 13,089 and 13,165 is a near term buy zone and support for weakness.

The hourly chart shows this is just a slight pause for breath as the breakout unwinds the stretched momentum, allowing indicators to renew upside potential.

  • Whilst the market trades above the 13,089 support the outlook remains strong for a 190 tick upside target of 13,270.

 


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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.