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DAX remains supported above the key December high


DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)

After the breakout, the consolidation has begun to set in, but will the break hold?

The incredible run of three huge bullish candles last week continued with another positive session yesterday but the futures show a doji candle.

Doji candles are typically reflective of caution with the prevailing trend, and this could mean that the bulls begin to question the longevity of the move.

The early move today has been cautiously positive as the market continues to hold back any profit-taking.

  • However the support of the breakout at 13,336 (the old December high) is now a key gauge, with closing support above 13,300 also important.

The RSI needs to also hold above 60 which would reflect strengthening momentum, with the MACD and Stochastics still rising.

There remains a positive bias in the run higher, but the bulls need to remain strong.

  • The hourly chart shows a broken four day uptrend but the 13,336 breakout is a basis of support now.
  • A close above the recent high at 13,409 would be strong and continue the push higher for a test of the all-time high at 13,525.

 


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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.