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DAX falling away with negative sentiment building

DAX Xetra (cash index)

The DAX is coming under increasing pressure as market sentiment has turned ever more negative in recent sessions.

Yesterday’s opening gap lower was bearishly filled and once more we see the DAX gapping lower again today.

Concern increases with the fact that the market has now broken below the recovery uptrend channel but also below the 23.6% Fibonacci retracement of the big sell-off at 12,379.

  • Gap resistance is at 12,418 and another bearish fill of this gap would add to the pressure.

Daily momentum indicators are now deteriorating with the Stochastics bear cross and RSI back below 40 notable.

The hourly chart shows negative configuration now growing with the hourly RSI which had previously tempted the bulls back in around 40, now breaking into the mid-30s.

Hourly MACD lines are also turning negative.

  • Initial support comes around the old pivot at 12,340 but the bears would really gain control below 12,284 which was a key reaction low.


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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.