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DAX futures analysis 03/03/2017


DAX futures (March contract is FDXH7, continuation contract is FDXc1)

 

Strong moves higher on the DAX tend to be followed by minor corrective phases and this seems to again be the case.

The unwinding corrective move has set in as the market has opened below the support of yesterday’s low at 12,038.

Yesterday’s “bearish spinning top” is a mildly corrective candle and is helping to unwind some of the overbought momentum built up from the hugely strong bull move on Wednesday.

The daily chart shows breakout support at 11,895 and the market could now drift back towards this as a basis of support.

The medium term uptrend comes in today at 11,835.

The daily RSI is unwinding back from back and has tended to find support in the 50/60 range and this corrective move is likely to be a buying opportunity once more.

On the hourly chart there is a mini support band 11,965/,12030 but if this is breached the band 11,850/11,895 comes back into play.

Waiting for a buying opportunity rather than selling short seems to be the best strategy as the trend remains so strong on the DAX.

  • Yesterday’s low at 12,041 is initial resistance and is also gap resistance too, before 12,082 and the key high at 12,100.

 


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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.