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DAX futures analysis 04/04/2017


DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)

 

Is the DAX due another near term correction?

The strong run higher hit a bit of a roadblock yesterday with a  bearish candle, however it was interesting to see the candle nowhere near as bearish as on the cash index, following the Wall Street rally into the close.

Despite this though there is still a crossing lower of the daily Stochastics whilst the RSI is again looking to fail around the 70 mark.

These signals have previously been followed by periods of near term correction (late Feb and early March).

There would easily be room to unwind back into the 12,120/12,210 support band (old breakouts).

The hourly chart shows that there is a gap down at the open today from last night’s 12,308 close and the market response to potentially filling (bearish) or closing (bullish) this bear gap will be key.

  • Resistance is 12,340/12,355 and the key high now at 12,411.
  • Today’s early low at 12,261 is initially supportive, before yesterday’s low at 12,234.

 


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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.