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DAX continues to consolidate, awaiting a catalyst


DAX Xetra (cash index)

The DAX continues to consolidate sideways in what is an extremely tight range, as the market awaits the next catalyst for a move.

For the past five completed sessions the market has traded sideways of around 115 ticks between 12,918/13,034 and once more early this morning there is little sign of this stalemate ending.

This lack of volatility is helping to pull the Average True Range ever lower to 102 ticks which is now the lowest level since early November.

However, this continues to be a consolidation that comes within the support of the six week uptrend channel, whilst the momentum indicators remain bullishly configured and suggests that this is simply still a consolidation before the next upside break.

  • With that, the market will be looking for a closing break outside the range, either below 12,927 or above 13,034 would imply an immediate implied target of just over 100 ticks.
  • Interestingly, to the downside this means the near term breakout support at 12,827 becomes a target, whilst above 13,034 means that the old support which is now resistance at 13,140 is an upside target.

 


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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.