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DAX futures analysis 20/07/2017


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

 

A strong open has improved the outlook and taken the market back above the key medium term pivot at 12,487 once more.

Despite this though, this pivot is still the neckline of a top pattern and there is a corrective look to the market having topped out.

What is positive for the bulls is that a strong uptrend has been forming since February and remains intact, and this suggests that the DAX is nearing a key crossroads.

The uptrend is at 12,370 now, but a sequence of lower highs is in place over recent weeks and is adding corrective pressure.

The pivot remains a key gauge of this.

Today’s rally back above moves to improve the chart again, especially if the market can hold above.

  • However the resistance is strong up at 12,672 whilst the 55 day moving average which has previously been supportive is now rolling over and providing resistance at 12,637.
  • The hourly chart shows a neckline of a top at 12,567 will be an area of resistance as the recovery again develops.
  • The pivot at 12,487 is again supportive with 12,408 and 12,374 further back.

 


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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.