DAX Xetra (cash index)
What a turnaround in the past few sessions, as the outlook suddenly threatens to turn negative again.
The market has been slipping back in a relatively calm corrective move in the past few sessions, however the calm has been robustly broken this morning on a sharp downside gap at the open.
Losing over 160 ticks very quickly this morning has not only decisively breached the uptrend channel of the past four weeks but also threatens to instantly shift the outlook.
Momentum indicators have quickly deteriorated and the market is trading below all moving averages again.
There is a big gap open now from yesterday’s low at 12,706, whilst the trend channel is now a basis of resistance at 12,675 today.
This is all reflected on the hourly chart with the 144 hour moving average (currently around 12,660) having been a basis of support now resistance.
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.