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DAX corrective momentum building with rallies sold into


DAX Xetra (cash index)

The uncertain outlook continues on the DAX as another volatile session saw the market close lower, but once more today we see the market reacting higher.

Taking a step back there is still a run of lower highs over the past four weeks, with a downtrend coming in at 11,580 today suggesting the rallies are still seen as a chance to sell.

Momentum indicators are still mixed, but it is interesting to see the Stochastics starting to accelerate in their tracking lower, whilst the RSI is stuck under 50 and MACD lines limp on.

  • The market has closed for the past couple of sessions within the 11,400/11,460 near term pivot band and once more today the initial moves are within this band.
  • Wednesday’s high at 11,567 is another lower high, whilst yesterday’s high at 11,500 adds to the resistance.

There is a continued sense that the market will continue to edge lower on a net basis, with a retest of yesterday’s low at 11,255 preferred as strength is seen as a chance to sell.

The hourly chart reflects the mild negative bias in the market.

 


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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.