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DAX futures analysis 29/08/2017


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

 

Once more DAX futures are under pressure as the market has opened sharply lower this morning.

As the resistance of the ten week downtrend has again been too much for the bulls the market had already been falling away, but the risk aversion has driven equities lower and the DAX has now breached the reaction low at 12,013 this morning.

The interesting feature of early trading is that the old support at 12,077 has come in as resistance intraday as rallies are a chance to sell.

The concern is added to as momentum indicators are once more deteriorating with the RSI back below 40, Stochastics turning lower and the MACD lines close to crossing down.

A close below 12,013 would open the 11,926 low and this looks to be the favoured outlook once again.

  • The hourly chart shows the negative configuration of momentum now and that any unwind to 50 would be a selling opportunity with the resistance band 12,077/12,120 now a sell-zone.
  • The 10 week downtrend now comes in below 12,200.
  • The March low at 11,870 is next support below 11,926.

 

 


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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.