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DAX trading with an increasingly uncertain feel now

DAX Xetra (cash index)

The mixed signals on the DAX continue to build even though the market has opened higher once again this morning.

However, for the past few sessions, intraday rallies have been sold into and this is adding to the lack of conviction that the bulls now face.

The momentum indicators reflects an uncertain outlook; with the medium term configuration of the RSI and MACD lines continuing to suggest that near term rallies remain a chance to sell, there needs to be considerable caution taken with the early gains on the market today.

The RSI and MACD lines remain below their neutral points, whilst the Stochastics are again tracking lower.

Despite this, the market has left support at Tuesday’s reaction low at 12,162 and the longer this remains intact the more important it will become.

The hourly chart shows the market is still paying regard to the pivot around 12,284 as a basis of resistance and interestingly where the market is currently trading.

  • Resistance at 12,460 is growing as a key near term resistance as a lower high below 12,601 but with the hourly RSI oscillating now between 30/70 there is a ranging feel to the market between 12,162 and 12,460.
  • A decisive breach of these levels would help to drive direction, but in the absence of this there is a distinctly uncertain feel to the market.


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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.