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DAX futures analysis 26/05/2017


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

 

The bulls continue to struggle for traction as once more the market has pulled lower from the near term pivot.

This is driving a drift lower on the momentum indicators with the daily MACD lines continuing to decline and the Stochastics below 40 and falling to levels not seen for five weeks.

However, there is still a feeling that this remains a pullback to be bought into.

The near term corrective moves have continued to build support around old breakouts and this is still in play for the DAX.

  • The recent lows 12,491 and 12,538 coincide with the old breakouts at 12,411 and then 12,518 which are the basis of support.

Subsequently today’s early weakness is likely to once more begin to find support for a retest of the 12,666 pivot and ultimately above.

The hourly chart shows the market is in drift mode with consolidation on the hourly momentum however there is nothing overly concerning about the decline today whilst the supports are intact.

  • Resistance remains 12,666 on a closing basis with 12,709 intraday.

 


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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.