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DAX technical analysis – Rally rolling over… for now


DAX futures (Sept 2017 contract is FDXU7 and expires on 15th Sept, continuation contract is FDXc1)

 

After adding as much as 500 ticks in a week, the market is just consolidating slightly today.

Having broken out above several key resistance levels, the next phase of this bull move will now be to solidify support.

This will involve leaving a higher low around recent key breakout levels.

This means that the 12,340/12,487 band now becomes a key area for this support and a medium term “buy zone”.

  • Any higher low around or above the medium term key pivot band 12,300/12,340 will be seen as s strong development for the bulls.

Momentum indicators have taken on a more bullish medium term configuration now with the RSI into the mid-60s and MACD lines rising strongly.

  • Initial resistance is now 12,560 with key resistance at the July high of 12,672.

The hourly chart shows strong momentum configuration with corrections being seen as a chance to buy as the stretched momentum unwinds.

  • Initial support is at 12,474 and 12,425.

 


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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.