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DAX futures analysis 01/09/2017


DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)

 

The DAX has continued the recovery of the past few days this morning, but how far can it go and will the sellers simply use it as another opportunity?

In the past three months the trend lower has shown rallies being sold into.

Momentum indicators now have a configuration that suggest moves to unwind have continually renewed downside potential.

  • The latest bounce, off support at 11,863 is now looking to push through the old lows around 12,077 but the trend lower looms large overhead at 12,163 today.

The RSI is still struggling to break the shackles, languishing still under 50 and the MACD lines have barely registered the rebound.

On the hourly chart the move has unwound oversold momentum once more with the MACD and Stochastics showing signs of loss of impetus in the recovery in the past 24 hours.

The market is around 35 ticks higher ahead of payrolls and could now begin to consolidate, but if there is a failure to push on in the wake of this afternoon’s announcement, the sellers could easily take control once more.

  • Resistance is initially around 12,115 then at 12,172 and 12,200.
  • Today’s low at 12,060 is supportive and yesterday’s gap-filling 12,028 will now be an increasingly important near term level for the recovery.

 


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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.