DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
Rallies are being increasingly sold into as the positive outlook on the DAX comes under strain.
Yesterday’s bearish filling of the downside gap shows how the bulls are struggling now and the importance of the near term support around 13,125 grows ever more significant.
Over the past week the chart is littered with failed intraday rallies and negative candles, however whilst 13,125 remains intact there is no significant bearish breakdown.
This support is the difference between an outlook of near term corrections being bought into, and the medium term outlook turning rangebound once more.
Momentum indicators are also on the brink as the MACD and Stochastics tick lower, whilst the RSI holds up above 50.
There is though signs of life in the bulls on the hourly chart as the early move today shows strength and a five day downtrend has been broken.
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.