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DAX rebounds as support of the range kicks in again

DAX Xetra (cash index)

The key near to medium term technical support around 12,600 has held on the DAX and the bulls are now looking to build a recovery once more within the 600 tick range.

During yesterday’s sharp decline, the key factor was whether the support of the neckline of the base breakout, that had become a basis of support in recent weeks, would continue to hold.

The market tested the support (with a brief dip to 12,594 yesterday) but subsequently then rallied to close with a positive candlestick (given the close was 30 ticks above the opening level) and now the bulls are continuing to run higher today.

  • Filling the gap at 12,780 will be the first task of the bulls now with early gains only tentative, however a move that closes above 12,780 today would actually be seen as positive within the range and would then re-open the mid-range pivot around 12,925 again.

Momentum indicators on the daily chart are reflective of a range play, with the RSI ticking up above 40 again and MACD lines still around neutral.

This is re-iterated on the hourly chat with the momentum indicators recovering following yesterday’s sharp downside move.

Continue to play the range whilst fluctuations in risk sentiment throws traders back and forth.

Another positive candlestick today would help with this move to unwind the market back towards the mid-range pivot again.


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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.