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DAX slipping back but is it a chance to buy?


DAX Xetra (cash index)

The market has consolidated the breakout above 12,780 but will bulls continue to look upon weakness within the uptrend channel as a chance to buy?

For the past four weeks the trend channel has been pulling higher as the market has found higher lows and broken through resistance levels.

Channel support comes in to support at 12,630 today which is around 180 ticks away from the market price and given the propensity for the market to often retreat back towards the channel support, this is still a near term risk.

A negative candle yesterday and early consolidation today around the breakout suggests a market in neat term wait and see mode.

However any weakness is still an opportunity for the bulls.

The RSI is positively configured in the mid-50s, whilst the MACD lines are above neutral to reflect positive medium term outlook.

However, the Stochastics are threatening to roll over which would be near term corrective.

  • A closing break back under 12,780 could be the trigger to watch out for, but there is decent support between 12,600/12,700 to look for the next buy signal.
  • Initial resistance is now 12,886 under 13,000 and then the key May high at 13,204.

 


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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.