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DAX pressured as intraday rallies fail at lower levels

DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)

The bulls have lost control as another extremely strong bear candle was formed yesterday.

With a three week uptrend broken, it now seems as though intraday rallies are being sold into.

Although the market is still trading above all the moving averages on the daily chart, the chart is deteriorating now.

The momentum indicators have tailed off and although the RSI and MACD lines have not yet thrown any sell signals, the Stochastics are in decline now.

  • Yesterday’s low at 13,214 is now protecting the key mid-January lows around 13,125.

The hourly chart is corrective and another rebound late in yesterday’s session seems to have hit the buffers and the selling pressure is creeping back in again today.

  • Rallies are failing at lower levels, the 21 hour moving average which had been supportive on the way up is now a basis of resistance around 13,360, whilst pivot levels are now also found as resistance.
  • The latest failure coming at a pivot at 13,350 which is now resistance initially and unless a 50 tick resistance 13,350/13,400 can be breached the corrective outlook will continue near term.

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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.