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Mixed signals on the DAX but bear bias remains


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

An extremely volatile session has left DAX traders in a quandary as the market gives off a range of mixed signals.

Sharp early gains saw a significant swing lower to leave a 220 tick range for the session but a close within a handful of ticks away from the open.

This formed an almost “long legged doji” candlestick pattern which is incredibly indecisive as a signal.

An early drop back this morning has also been bought into again as the market fails to take on negative traction from last night’s intraday sell-off on Wall Street.

This is leaving the technical outlook very much with an air of uncertainty.

The bulls will point to the fact that the market continues to hang on to the support of the pivot around 13,200 into the close, however if this level starts to be broken in the coming days then the corrective foreces could increase.

  • Trading below the hourly moving average gives the market a negative bias still and the resistance around 13,300/13,350 is growing.
  • Yesterday’s low at 13,125 is supportive, with today’s low at 13,168 initially a level to watch.
  • With the speed of yesterday’s correction there is little resistance to really go by although 13,260 could be worth watching initially.

 


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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.