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DAX testing the range highs again but can it breakout?

DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)

Upside pressure for a breakout grows, after Friday’s intraday move above 13,209 however the decisive break is as yet still illusive.

The market closed strongly higher on Friday but the closing price was well off the day high and subsequently the importance of today’s candle increases.

The initial move higher has failed to ignite the bulls quite yet and it is interesting to see the initial day high at 13,205, under the previous resistance.

However looking at the daily momentum indicators, the market is certainly building for a breakout this time, with the MACD lines crossing higher around neutral and the upside traction in the Stochastics.

A move on the RSI above 60 would really begin to argue strongly for a decisive move to the upside.

A close above 13,209 would now be that trigger that the market is looking for.

It would complete a four week range breakout and imply around 400 ticks of upside to at least retest the highs once more at 13,533.

  • The hourly chart shows support initially building at 13,143 now but there is a gap still open from Friday’s open and this is still at risk of being filled.
  • The strength of the hourly indicators would suggest a dip back to fill the gap support around 13,100 could now even be a buying opportunity., but the treatment of this gap could be key near term.
  • There is further support at 12,985, whilst resistance is at 13,244 from Friday’s high.

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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.