Live Chat

Important moment for the recovery in the DAX

DAX Xetra (cash index)

The outlook remains positive following the breakout above 12,600 and with the trend channel of the past few weeks remaining intact, corrections are a chance to buy.

An upside gap at 12,688 was closed yesterday so the reaction in today’s session will be important.

For now this is a near term bullish correction, however the importance of the support band 12,600/12,640 is significant now.

A successful building of support in this area will be a strong indication that the bulls are ready to push forward in the recovery.

However should the support and the uptrend channel (today at 12,615) fail then the bulls will have lost the impetus of the breakout.

Momentum indicators are at key levels too, with the RSI needing to hold above 50 and the MACD lines having only unwound to neutral.

So this is a key moment on a medium term basis.

  • The early reaction today has been to dip slightly into 12,600/12,640 and then the buyers have returned, which is a positive move.

The hourly chart also shows the positive configuration remains and this is a correction to be seen as another opportunity to buy into.

  • Resistance is now around 12,780, but initially around 12,700/12,730 is restrictive today.

Can the bulls reclaim control?

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.