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DAX futures analysis 19/04/2017


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

 

For the first time in three weeks the DAX futures have closed below the support at 12,130.

This now puts the downside pressure on as another uptrend (dating back to early Feb) has been breached.

Looking at daily momentum indicators, the increasingly corrective outlook is reflected in the daily momentum indicators with the RSI now in the low 40s and the lowest level since Donald Trump was elected.

A downtrend is forming now with the trend shown in the hourly chart where the run of lower highs and negative momentum configuration is in place.

Rallies are now a chance to sell.

  • As a new downtrend starts to take shape, old support becomes new resistance with a band of resistance now in the range 12,070/12,130.
  • Initial support is today’s low at 12,027 before 11,995 and yesterday’s low at 11,980.
  • Increasingly the market is shaping up for a correction toward the old key band of support 11,879/11,920.

 


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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.