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DAX under pressure again, set to test October low


DAX Xetra (cash index)

Downside pressure grows on the DAX and what seems to have been a negative drift is accelerating into a more considerable correction.

We spoke yesterday about using intraday rallies as a chance to sell as the market posts lower highs and lower lows under a falling trend and negative momentum signals.

The concern will now be growing this morning as the MACD lines are today posting a bear cross, which is the first since early October when the market accelerated sharply lower.

A test of the October low at 11,051 is now highly likely to be tested.

Negative daily momentum indicators have downside potential and there is a continuation to see any intraday rallies as a chance to sell.

  • A break below 11,051 would actually also break a primary uptrend that dates back to 2011 and open 10,400.
  • There is initial resistance at 11,233/11,310 with the resistance band 11,400/11,460 bolstered.

 


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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.