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Is the DAX now a sell into strength?


DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)

A second successive strong bearish candle and negative session yesterday keeps up the premise that this is a corrective move still in progress for the DAX.

This comes as momentum indicators deteriorate with the MACD lines losing upside traction and the Stochastics on the brink of confirming a near term bear cross sell signal.

The last two sessions have seen early gains sold into and with the early gains today the bears will be looking at another potential opportunity.

However reaction around 13,200 is now interesting with this seen as a near term pivot, again coming in as a basis of support early today.

A decisive close below 13,200 would heap pressure on the downside for a corrective move back towards 13,000 once more as the volatile ranging market of the past couple of months continues to play out.

The hourly chart shows a negative configuration on momentum indicators and intraday rallies being sold into.

  • The resistance around 13,300/13,340 is now a key near term level to watch as another lower high below this would again point towards further downside.
  • There is initial support today at 13,200 with yesterday’s low at 13,142 a key near term level.

 


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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.