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Is the DAX ready to build sustainable support again?

DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)


The sell-off continued during yesterday’s session but there are increasing signs of support having now been formed.

Is the correction now over?

The initial answer is that there needs to be more evidence of sustainable support before being confident of moving back into long positions.

Yesterday’s bearish candle closed well above the low of 12,958 into the top half of the session.

  • This move has also bounced back above the previous support band 12,900/13,090 which is taking on added importance on a medium term basis now.
  • Today’s gains are early in the session but a move to close back above 13,090 would be a positive sign.

Momentum indicators on the daily chart are just beginning to now slow their correction which is interesting as the RSI is ticking higher just under 50.

The caveat is that support looked to be forming early in yesterday’s session only for a strong sell-off subsequently coming though.

However there are signs of improvement on the hourly chart.

If the hourly RSI can push and hold above 50 and the Stochastics bolster above 80 with the hourly MACD lines above neutral then the outlook will begin to look far more positively configured.

  • Resistance comes in at yesterday’s high of 13,160 which is then added to in the range 13,190/13,250.
  • Today’s traded low at 13,074 is initial support above 12,958.


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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.