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DAX futures analysis 06/04/2017


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

 

The DAX has now broken below near term support at 12,234 to complete a small top pattern and drive a corrective move.

The immediate support band 12,130/12,210 is now being tested.

The near term deterioration in the momentum is consistent with previous corrective moves and for now there is little reason to believe the move will be anything too significant.

The daily RSI show the lows consistently around the 45/50 level, whilst the Stochastics are corrective and this could drive an extended near term dip.

The critical low for a medium term perspective is the 11,878 late March low.

Any higher low above 11,920 would be seen as a buying opportunity.

The hourly chart shows the top pattern implies a corrective move of around 175 ticks to 12,060.

  • Breakdown support at 12,210/12,234 now becomes a near term basis of resistance.
  • Below 12,130, initial support is 12,073, a minor pivot around 12,040 and then the low at 11,942.

 


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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.