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DAX recovery consolidating in front of US inflation


DAX Xetra (cash index)

There is a trend higher that has developed over the past seven sessions, but the bulls need to grasp the impetus once more today to prevent the rally from losing momentum.

Although there was a positive session yesterday, including a filled upside gap, a close below the open leaves question marks over the strength of the buying.

Today’s move has found support around the seven day uptrend but now needs to use this support to push higher once more to test the key resistance band 12,500/12,600.

This comes as the RSI is now back to 50 and the Stochastics threaten to roll over.

Reaction to US CPI this afternoon could therefore be key to the near term outlook.

  • There is support initially from yesterday’s low at 12,360 whilst the hourly chart shows the near term pivot at 12,284 is strengthening as a floor.
  • A move above initial resistance of yesterday’s high at 12,455 would regather some impetus, especially on a closing basis.
  • However the 38.2% Fibonacci retracement at 12,505 and the key February high at 12,601 are key levels overhead.


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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.