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DAX futures analysis 07/08/2017


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

 

The strong bullish candle on Friday (helped undoubtedly by a euro correction) has put the DAX back at another key crossroads.

Is this a rally going to again fail as it has down over the past couple of weeks around the old breakdown just above 12,300?

  • There is a series of lows through late June/early July to overcome as overhead supply between 12,303/12,380 which is a key band of near term resistance now.

The near term momentum has picked up with a bull cross on MACD and Stochastics buy signal, however now this needs to be converted into a consistent rally.

That makes today’s session key.

Friday could now close above 12,303 but the bulls are still sitting with more confidence in the market.

  • The hourly chart shows a move above 12,340 completes a head and shoulders reversal, with the momentum indicators more positively configured.
  • Initial support is 12,269 with the rally failing below a pivot at 12,200.

 


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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.