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DAX selling off again as bears re-surface once more


DAX Xetra (cash index)

The rally has fallen over once more as the market has gapped lower again this morning as the bears has re-surfaced.

Although yesterday’s sharp rebound saw the market closing 183 ticks higher, what was interesting was that the market close below the 12,000 pivot but also that a “negative” one day candle formed with the close below the open.

This has just added to the overhead supply resistance which is growing at 12,000/12,043.

Momentum indicators remain negatively configured across the past few months with rallies consistently being sold into.

The early selling pressure today just adds to this negative sentiment.

  • There is a gap open with yesterday’s low at 11,927 which still needs to be filled but the bears are decisively in control now as the selling pressure is growing early today, whilst 11,902 is today’s traded high.

This is shown on the hourly chart with the hourly RSI again failing around 50/55 and MACD lines seemingly failing under neutral.

  • There is an old low around 11,820 which is breaking and a decisive move below seems to be forming now and that would re-open Monday’s low at 11,726.
  • A breach of 11,726 opens the next support at 11,400.

Rallies remain a chance to sell.

 


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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.