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DAX slips back but is it another chance to buy?


DAX Xetra (cash index)

As the outlook has improved in recent sessions the DAX has moves towards a test of the key lower high from March at 12,460, but can the bulls breakout?

Yesterday’s opening gap higher was bullishly filled and even though the candlestick was all but a doji (which denotes uncertainty with the trend), there is still a positive outlook in place near to medium term.

The early slip back today has done little to impact on the outlook quite yet and the bulls will be looking for any higher low to be posted above the one month pivot around 12,160.

If this can be seen then the market will be looking at using weakness as a chance to buy again with the March high again in mind.

Momentum indicators on the daily chart remain strongly configured for the continued recovery.

This is reflected on the hourly chart which shows strong momentum configuration of the past few sessions.

  • With weakness a chance to buy, initial support is yesterday’s traded low at 12,335 which is protecting the support around 12,200.
  • Yesterday’s high at 12,429 is initial resistance.

 


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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.