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DAX futures technical analysis 22/03/2017


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

 

The outlook has taken a decisive turn for the worse in the past 24 hours.

The market broke below the near term support at 11,950 yesterday to break (another) uptrend which dates back to early February, whilst also set to complete a small three week top pattern.

With the market down again today, a close below 11,950 would imply around 180 ticks of additional downside.

Looking at the daily momentum there has been a decisive shift in sentiment, with the RSI below 50 and also currently at a three month low, whilst the Stochastics are now corrective too.

The daily chart also shows the support of the old January high at 11,920 is being breached today and a close below here would confirm the corrective move, by then opening the next old breakout at 11,707.

The hourly chart shows momentum is increasingly deteriorating and rallies are likely to now be seen as a chance to sell.

  • The 11,950 old support is resistance today with the old floor further up at 12,050 now forming a near term “sell zone”.
  • Next support is 11,811 and then 11,750.

 


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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.