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DAX consolidation ends with a huge upside breakout


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

 

The consolidation has been smashed by the ECB decision that weakened the euro and pulled the DAX sharply higher.

A breakout above 13,089 has seen futures storming to all-time highs and implies around 190 ticks of upside measured from 13,089 towards 13,280.

The breakout of the resistance now becomes supportive but the bulls are well in control of this breakout.

  • This is shows on the hourly chart with the market gapping higher at the open today and leaving initial support around 13,140.
  • A support band of around 50 ticks is therefore in place between 13,090/13,140.

Additionally it means that weakness will be seen as a chance to buy, with hourly indicators initially stretched.

Any unwind is likely to be pounced upon by the bulls.

 


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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.