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DAX slipping back but is it a chance to buy?


DAX Xetra (cash index)

An early slip on the DAX has pulled below 13,000 once more as the bulls show initial signs of stuttering in the run higher, but does it change the outlook?

For now this is nothing more than an initial consolidation and corrections remain a chance to buy within the five week uptrend channel.

Momentum indicators on the daily chart remain strongly configured with the continued confirmation of the multi-week uptrend.

However, the Stochastics need to be watched as an earlier outlier in their threat to cross lower, which could be an early warning signal.

The hourly chart shows that there is a slight slip on momentum that needs to be supported soon, as the run of higher lows is still intact for now but a break below 12,928 would be a threat to the strength of the bulls now.

Holding above 45/50 on the hourly RSI and above neutral on the hourly MACD lines would be important too.

  • Resistance at 12,034 is growing having been tested in the past couple of sessions, but a renewed buying pressure above there would open 13,140 initially.
  • The uptrend channel currently supports around 12,750, whilst 12,827 is a breakout support.

 


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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.