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DAX higher as rally continues to gather momentum


DAX Xetra (cash index)

A recovery on the DAX continues to gather momentum as another jump higher in early moves today further strengthens a growing uptrend rally.

This comes with momentum indicators posting increasingly positive signals as the Stochastics accelerate higher, the MACD lines complete a bull cross and the RSI moves to a four week high.

With a gap higher at the open today (11,575 would fill the gap from yesterday’s high) the uptrend of the past week comes in to support the market at 11,445 today.

This coincides with the support band of 11,400 (an old long term pivot) and 11,460 (previous October lows) and with momentum indicators continuing to improve, intraday corrections are now seen as a chance to buy.

  • The rally is on course for a return to the old key lows 11,726/11,865 which is now a band of overhead supply.
  • The hourly chart reflects the improved momentum of recent days and any unwind into 11,500/11,575 looks a chance to buy.
  • Initial resistance is today’s early high at 11,651.

 


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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.