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DAX rebounds again but have we seen a bottom?


DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)

 

The DAX looked to be breaking down yesterday before an intraday rebound saved the market from a closing breach of the support at 12,810.

Closing at 12,849 the market has opened higher again this morning and it seems that the move has prevented a large top pattern from completing.

The key factor now becomes the resistance of the old support at 13,000.

If the bulls can recover to close back above this mid-range barrier then the outlook will significantly pick up again.

Momentum indicators suggest ranging conditions continue, with the RSI again picking up again at 38 (within the 38/62 range) whilst the Stochastics are also crossing higher again at the point they did at the November lows.

  • This could again be a key turning point within the range but the market needs to close back above 13,000 to add conviction in the move but a close above yesterday’s high of 12,940 would be a good start today.
  • Today’s traded low of 12,894 is supportive initially with 12,810 and 12,730 being key.

 


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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.