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DAX rallies towards the top of the range again

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

The rally within the range that began during Wednesday’s choppy session continues, but can it breakout?

An opening gap higher has been seen again and the market is now back in the area of resistance that has proved to be so difficult to breach in the past few weeks.

  • The band between 13,100/13,209 has been an area where the bulls tend to fail and this could prevent gains from continuing today.

Momentum indicators are ticking higher again, with the Stochastics rising, and the MACD lines are bottoming.

The RSI has improved into the mid-50s but to signal a sustainable upside breakout (if a move above 13,209 is seen) then a push into the 60s is really needed.

  • The hourly chart shows a gap open at 13,100 today that ideally needs to be filled, but the hourly momentum has improved and is now suggesting a slight growing of upside pressure.

A closing breakout needs to be seen for a decisive breach of the recent range.

Non-farm Payrolls uncertainty this morning means a breakout is unlikely before 1330GMT, but perhaps a strong, risk positive report will help drive a breakout?

The technicals are ranging for now but nothing is yet calling for a decisive breakout.


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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.