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DAX futures analysis 22/08/2017


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

 

The DAX has jumped again this morning but is this any more than a rebound to sell once more?

Given the strength of the bearish candle that closed well below the old support at 12,077 yesterday the recovery this morning looks to be somewhat of a surprise.

However whilst the nine week downtrend is intact there is little suggestion that the bulls can hang on to the recoveries.

Daily momentum indicators remain negatively configured with the RSI below 50 and MACD lines still stuck well below neutral.

Selling into strength remains the strategy.

  • However this near term bounce could gather momentum should the market manage a close back above yesterday’s high at 12,158 which would be a clear positive reaction following yesterday’s sharp down day.
  • Watch on the hourly chart old pivot resistance at 12,200 as well which would confirm the improvement.
  • There is a pivot around 12,077 that is once more supportive, whilst today’s traded low at 12,105 is also a support to watch initially.

Ultimately, the bulls will continue to struggle whilst the 12,300/12,340 resistance remains intact.

 


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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.