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DAX sharply lower again, threatening the range lows


DAX Xetra (cash index)

The prospects of a sustained recovery in the DAX have taken another hit this morning as the market has traded sharply lower again in early moves.

This is now unwinding much of the gains seen in the past three sessions as the market had looked to pick up again.

Friday’s rally failed to break through the March high of 12,460 as the rebound turned lower from 12,455 to strengthen the resistance overhead.

This comes as momentum indicators question the longevity of the rally, as the RSI has again turned lower below 50 and the MACD lines struggle below neutral.

On a near term basis, leaving the intraday noise aside there is a mini-range of around 300 ticks between 12,162/12,460 and a close outside of this now eight day range is set to drive direction, deriving 300 ticks of further move.

The hourly chart shows hourly RSI oscillating between 30/70 and MACD lines fluctuating around neutral, so any move outside this would be an early signal.

  • There is a gap open from this morning’s open at 12,340 which is resistance that needs filling now.
  • Initial support is at 12,200 before 12,162 being key near term.

 


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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.