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DAX remains under pressure as 2019 kicks off


DAX Xetra (cash index)

As we come into the new year, rallies remain a chance to sell for the DAX.

Breaking the support of the early December low at 10,585 in the final days of 2018 has meant that this became a basis of resistance, something that was seen pretty much to the tick with the rally on 31st.

However, the first trading day of the year, the move has simply fallen over again and a four week downtrend is tracking the market lower, today at 10,525.

Momentum is confirming this move, with the MACD lines consistently in decline, whilst the RSI is struggling under 40 and Stochastics well set in bear territory.

The hourly chart shows momentum again rolling over with the RSI failing between 50/60, MACD lines rolling over under neutral and a sell signal on hourly Stochastics.

  • A retest of the low at 10,279 is likely, whilst the long term implied target at 10,150 remains on.
  • Initial resistance with today’s high at 10,483 below the 2018 close of 10,5559.
  • Initial support at 10,387 is the early low from today.

 


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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.