DAX Xetra (cash index)
There has been a mild improvement in risk appetite in the past 24 hours that has allowed the DAX to form a recovery of sorts, but how long it lasts for is another issue.
The medium to longer term outlook remains deeply negative and there is an implied target of 10,150 for the coming months.
Right now though there has been a rebound against the wave of selling that has taken the market above 10,800 but big overhead supply above 11,000 looms large.
This should provide another chance to sell, but timing this move will be key.
For now the momentum is with a rebound.
The hourly chart shows the RSI and MACD lines unwinding to levels where the sellers would be eying an opportunity.
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.