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DAX gaps higher again as the choppy trading continues


DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)

 

Trading the DAX through these recently choppy waters is a difficult market to master.

The huge bear candle from Friday suggested that pressure is mounting on the key support band now at 12,805/12,900, however the opening gap higher today has the potential to shift the outlook once again.

There does seem to have been a negative bias forming in recent sessions, however a strong close today could turn this around.

The momentum indicators have a highly uncertain look to them and there is little really decisive signal to go on for now.

Ultimately there needs to be a close below the 12,900 support or above 13,209.

Within a 300/400 tick band much else seems to be somewhat choppy, indecisive noise.

The hourly chart shows something more of an orderly consolidation range, and the technical indicators suggest playing the extremes of the hourly RSI.

  • Today’s high at 13,088 is initial resistance on the upside, whilst there is a gap open at 12,950.

 


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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.