Live Chat

DAX under pressure again with support severely tested

DAX Xetra (cash index)

The recovery is already threatening to roll over as a failure to breakout above 12,600 again has pulled the profit-takers back in once more.

Is this an opportunity for renewed selling pressure?

The support at 12,500 has been breached early today whilst the recovery uptrend has also been broken on an intraday basis.

What will now be key is today’s close. A second decisive bear candle in the past three sessions is now in the offing.

A close below 12,500 would also close below the uptrend (which is in at 12,500 today), a move that would seriously test the strength of the bull control.

  • However, if this included a close below 12,400 then it would really add corrective pressure.

The momentum indicators are starting to wane once more in their recovery and this is certainly a key moment in how the recovery goes now.

Below 12,450 would also be back below all the moving averages (which are in decline) too.

The hourly chart shows that the upside momentum has lost impetus but is not yet negatively configured on momentum.

  • The support at 12,440 is an initial buffer whilst the bears regain control below 12,345.
  • How the market reacts to 12,500 will again be a telling gauge, with the resistance at 12,600 growing once more.


Ready to start trading?

Open an Account Try Demo

  • Archive

  • Topics

  • Videos

Research Risk Warning

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.