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DAX remains under pressure as 12,000 looms

DAX Xetra (cash index)

Having broken decisively below several supports in recent days, the DA just continue to fall and shows little sign of stopping any time soon.

The break below 12,600 implies a retreat to 12,000 whilst the latest supports to be broken at 12,312 and 12,252 simply add to the corrective momentum.

There is a downtrend that has tracked lower over the past nine sessions which is extremely sharp (falling at over 100 ticks per day) but the market still shows little sign of breaking this trend.

Momentum is increasingly corrective the MACD lines accelerating into negative territory and the Stochastics have turned lower again.

The RSI is in the low 30s and still has downside potential in this bear leg.

  • There is a hint of support that may come in around 12,150 which was an old pivot during March and could play a role in the next day or so.
  • However the way that sentiment on the DAX has been hit in recent sessions, a retreat to 12,000 should certainly not be ruled out.
  • Intraday rallies within this continue to be seen as a chance to sell, with the old supports now a basis of resistance between 12,250/12,310, whilst the downtrend resistance comes in at 12,330 today.

The hourly chart shows the deeply negative configuration with the RSI failing for the past couple of weeks under 45, whilst the falling 21 hour moving average has become a near term gauge of resistance too (currently 12,345).

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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.