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DAX futures analysis 03/07/2017


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

 

Will the early bounce today turn out to be another chance to sell?

In the last couple of weeks the market has been tracking lower.

Thursday’s huge bearish engulfing candle still dominates the near term negative outlook with the market continuing to trade below the old key support at 12,487.

With Friday’s confirmation bear candle lower, this suggests that whilst today’s early bounce is encouraging, the move is unlikely to change the outlook.

Momentum indicators are correctively configured and add to the assertion that a technical rally will be seen as the next opportunity to sell.

  • There is a band of resistance 12,427/12,487 which will be seen as a near term “sell-zone” and today’s early rebound has hit 12,410 before falling stalling.
  • Expect a retest of Friday’s low at 12,303 whilst the April low at 11,965 is the next key low.
  • The hourly chart shows resistance at 12,452 (Friday’s high) and then at 12,527 ((Wednesday’s 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.