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DAX tentatively edges higher with resistance in focus

DAX Xetra (cash index)

This remains a very cautious phase of trading on the DAX as the market creeps higher but with little real conviction.

The uptrend channel of the past two and a half months remains intact but there is also now a five week uptrend which the market is running up and is supportive today around 11,550.

Yesterday’s daily candlestick was especially tentative in its move higher, with initial gains slipping back into the close.

The market is still eyeing the resistance of the March high at 10,677 but once more this morning there is a lack of conviction in the market.

Despite this there is still a sense that corrections remain a chance to buy, with the RSI above 60 and Stochastics recently crossing higher again.

However, it is as though the market is waiting now for the next catalyst for a break above 10,677.

The hourly chart reflects the mild positive bias and a move back above a near term pivot at 11,555 which is an initial basis of support.

  • Initial resistance at 11,635 before the 11,677 resistance.
  • A breakout above 11,677 opens the long term pivot band 11,725/11,865.

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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.