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DAX rebounds again but outlook is increasingly ranging

DAX Xetra (cash index)

An intraday rebound yesterday curbed the selling pressure and early gains today have helped to settle the nerves for the bulls, however the market is taking on an increasingly mixed outlook now.

Previously there has been a pivot around 12,600 and this has been a useful gauge for near term sentiment.

Today’s early rally has pulled the market back towards this pivot once more and will be watched once more.

However, moving averages have all plateaued and look very neutrally configured, as does the RSI flat around 50 and MACD lines flattening around neutral.

This comes within the choppy trading around the 12,600 pivot in the past two weeks and an increasing lack of decisive trend.

  • The near term support comes in at 12,400 but leaving Friday’s low at 12,470 adds an extra support for the floor.
  • On the resistance side, a close above 12,600 would re-open the recent high around 12,780 which is also an old pivot.

The hourly chart shows a market in near term range phase with the RSI fluctuating between 30/70 whilst a bull cross buy signal on the MACD lines suggests an improving outlook near term (certainly potentially added to on a close above 12,600 today).

  • There is minor resistance at 12,705.


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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.