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DAX remains a buy into weakness on early slip today


DAX Xetra (cash index)

Despite an early dip back today, the outlook for the DAX continues to improve.

A couple of strong positive candles have pulled the market above the moving averages for the first time since the February sell-off and continues the run higher within the uptrend channel of the past five weeks.

With strong configuration on momentum indicators, a move towards 13,000 is still likely, with weakness being bought into.

A slight air of risk aversion (ahead of Trump’s announcement on Iran) has pulled the reins slightly, but as yet there is little to suggest anything malign about this correction.

  • The hourly chart shows a breakout above 12,827 yesterday has left a good band of support between 12,650/12,827 now and a move that helps to renew the upside potential will be seen as a chance to buy into support.

Anything that starts to show positive signals again with the RSI retreating towards 45/50 on the hourly chart could be that opportunity.

  • There is now initial resistance at 12,961, but once the bulls regain their poise following this morning’s shake, a move towards 13,000 and the next resistance at 13,140 can be expected.

 


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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.