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DAX lower again amid growing selling pressure


DAX Xetra (cash index)

An increasingly choppy outlook has formed in recent sessions, but this has come with the bulls losing their control of the market.

The last two candlesticks on the daily chart have been fascinating, with long downside shadows suggesting initial selling pressure has not lasted the distance, however the market is falling away now.

A two week uptrend has subsequently been broken and the pivot band between 12,400/12,500 has been broken as support.

Yet again the market has sold off in early moves today, breaching 12,400 as the early move to the downside has been seen.

This move has opened 12,345 as the next support but it will also be interesting to now see how the bulls treat the band 12,400/12,500 as this could now become a basis of resistance.

  • The hourly chart shows a corrective move is developing and there is a sell zone between 12,440/12,500 today.
  • A move below 12,345 would open a retreat back towards the August lows again at 12,120.
  • Today’s low at 12,367 is now initial support.
  • The old pivot at 12,600 is building as an increasingly important resistance.

 


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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.