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DAX momentum building to the upside once more


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

The bulls could not sustain the push higher yesterday as a late drop into the close saw the market post a rather negative looking candle despite the marginal gains on the day.

However there is still a mild trend higher that has formed over the past nine sessions and this continues to suggest the bulls pulling higher to put pressure on the resistance at 13,209 in due course.

Momentum indicators are in the process of reflecting this move higher, with the Stochastics now beginning to find upside traction and the MACD lines bottoming.

On the hourly chart there is a series of higher lows that help to form the uptrend now and this suggests that there is a basis of support 12,990/13,000 today.

Furthermore, the improvement in the near term outlook is such that hourly momentum indicators are showing characteristics of buying into weakness now, something that is being reflected it eh early moves today.

The hourly RSI is finding lows around 40, whilst the MACD lines are bottoming around neutral.

  • There is initial support at 13,029 from yesterday’s late low.
  • The bulls will be keen to pull the market back above 13,100 which has become the beginning of what looks now to be the beginning of a pivot band of resistance around 13,100/13,210 in the past month.

This ceiling needs to be broken to generate sustainable traction to the upside now.

 


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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.