DAX Xetra (cash index)
A break of the recent trend lower, but the bulls will be viewing the gains of recent days with some caution and the outlook for a sustainable recovery is still in question.
Monday’s jump higher actually contained a negative candlestick pattern for the session, whilst yesterday’s session closed well off the session highs and was actually close to forming a shooting star.
Subsequently, today’s session is looking decidedly cautious.
Early gains at the open have faded and the recovery on daily momentum indicators are losing their recovery momentum again.
The concern with how this move higher has progressed rises with the fact that yesterday’s high coinciding almost entirely with the resistance of the old low at 12,918 as the market peaked at 12,925 yesterday.
Interestingly, also this high came at the 21 day moving average which has rolled over (today at 12,902) and has often been used as a basis of support and resistance in recent months.
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.