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DAX pushes on key pivot resistance ahead of ECB


DAX Xetra (cash index)

The bullish technical uptrend channel has been kept on track this morning as the news over agreement between the US and EU over trade has resulted in a sharp positive gap higher in the export-heavy DAX at the open.

The move has completely flipped what had threatened to be a breakdown in the trend channel, leaving a support at 12,538 and the market is challenging recent resistance once more.

Technically this has been a bit of a messy run of candles over the last week on the DAX but in front of the ECB meeting today the resistance at the pivot of 12,780 is again being tested.

Momentum indicators are hinting at an improving outlook, with the RSI edging higher above 50, MACD lines marginally higher and Stochastics ticking back up again.

However a closing breakout above 12,780 needs to be seen in order to open the next phase of upside within the uptrend channel.

Watch for the RSI above 60 to confirm a renewed sense of bullishness too.

Hourly chart momentum is fairly mixed on configuration and exactly how the market deals with the pivot will be key.

  • Support is initially at 12,700 but there will also be focus on the old medium term pivot at 12,600 (which admittedly has been less of a gauge in the past couple of weeks).
  • The trend support comes in around 12,550 today.
  • A close above 12,780 opens continued gains towards the psychological 13,000 with the key June high at 13,170 and the May high of 13,204.

 


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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.