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DAX sellers once more use the rally to sell


DAX Xetra (cash index)

A doji candle posted yesterday signals a degree of uncertainty in the market, however the recent downtrends on the DAX all remain intact.

Once more, as trade tensions between the US and China seemingly escalate, the DAX is underperforming European peers and the market has opened lower again today.

This comes as the market closed yesterday’s session around the 12,000 pivot but has once more pulled back below this level this morning.

The resistance of the sharpest downtrend (of the past two weeks) comes in at 12,090 today but a close back below 12,000 would increase the bear pressure.

Yesterday’s session low at 11,913 has just been broken but a closing breach would really suggest a retest of March low at 11,726 would be increasingly likely.

The hourly chart continues to suggest that intraday rallies continue to be seen as a chance to sell, with the hourly RSI again failing around 60 and MACD lines struggling around neutral.

  • Friday’s rebound high at 12,151 adds strength to the main near term pivot at 12,162 whilst there is an interim near term resistance now at 12,069.
  • Aside from minor support at 11,850 there is a slight higher low at 11,770 protecting 11,726.

 


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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.