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DAX rebounds but the 12,000 pivot remains key

DAX Xetra (cash index)

With risk appetite recovering strongly across financial markets the DAX has embarked upon a rebound, but for how long?

The early bounce in the DAX has once more seen the market back up to a resistance of the pivot around 12,000 which has limited the early exuberance.

This pivot is becoming an increasingly key level on a near term basis.

How the market treats this level in the coming hours (and maybe days) could be crucial to the near term outlook.

Clearly it is currently a resistance to the early reaction higher, and subsequently a negative one day candle formation is in process (current price is over 50 ticks below the open).

But if the recovery momentum on the hourly chart can be sustained then the bulls will be pushing back towards this pivot again.

  • A close above 12,000 would be a key psychological barrier overcome and open the 12,162 next band of resistance.
  • For now this is a recovery within the medium term bear run (a four week downtrend comes in at 12,360 today).
  • However finally a rebound could be forming, from yesterday’s multi-month low at 11,726.


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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.