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Drift back continues but DAX bulls still hold control


DAX Xetra (cash index)

The DAX continues to drift in a consolidation move as the bulls just find recent gains slightly pared back below 13,000.

Although this has now decisively broken the two week uptrend, there is currently still nothing overly serious about the move back which comes within the uptrend channel of the past five weeks.

Despite a second consecutive negative candlestick, there was a pick up from yesterday’s low at 12,927 and selling pressure failed to take hold.

The RSI continues to trend higher in confirmation of the channel, whilst the MACD and Stochastics are also still positively configured to suggest that corrections will be bought into.

  • There is breakout support above 12,827, with 12,890 a higher low but the hourly chart suggests this recent move has unwound any semblance of stretched upside momentum and should help to renew upside potential.
  • This should still be a move that is bought into for a retest of the recent highs at 13,033 and a continuation of the trend channel higher.

 


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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.