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DAX rebound is at a crucial near term junction

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


The issue over whether this is a sustainable recovery has yet to be fully resolved.

The market subsequently remains at somewhat of a crossroads.

A recovery from 12,843 has added around 250 ticks to its peak yesterday, however this peak failed around a near term pivot and is a level that needs to be decisively breached for the bulls to feel back in control again.

Corrective momentum indicators have calmed with the RSI and Stochastics ticking back higher, however these now need to gain upside traction, something which is yet to be seen.

The hourly chart  shows a near term broken downtrend and improvement in momentum, but the momentum is beginning to threaten to tail off.

This means that near term levels could prove to be key in the recovery.

  • Watch support at 13,025 to hold, whilst a move above 13,136 would be the first break of a higher low within the recent sell-off.

Early moves today have been unconvincing and it could be reaction to Wall Street this afternoon that drives the outlook.


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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.