Live Chat
Open a Live Account
Try MT4 Demo
Fund Account Open a Live Account Try MT4 Demo Portal
Menu ☰

Selling pressure mounts on DAX with intraday rallies sold

Posted by on Oct, 8 2018.

DAX Xetra (cash index)

A corrective downtrend channel continues to pull the DAX lower as momentum in the resumed sell-off grows.

With a run of lower highs and lower lows taking hold, the market is now back below the support band 12,100/12,130 following a gap lower today.

Friday’s decisive solid bearish candle reflects the negative sentiment that is developing on the DAX which increasingly has intraday rallies being sold into.

The market gapped to the bottom of the trend channel today and this is a gap that needs to be filled at 12,103 but any move to unwind the initial sell-off today should be seen as another opportunity to sell.

A close below 12,100 today would certainly leave the market at risk of a retreat to test the 11,865 September low.

Momentum indicators are taking an increasingly corrective configuration now with the Stochastics accelerating lower, RSI below 40 and most concerning for the bulls, a MACD sell signal.

  • Initial resistance is at today’s initial high at 12,072 whilst the gap is still open at 12,103 and the hourly chart shows a sell zone of overhead supply around 12,170/12,190.
  • There is minor support at 11,952 which protects 11,865.

 

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.

Platforms

Products

Support

Professional

This website is owned and operated by Hantec Markets Limited. Registered Office: 43-45 Dorset Street, London, W1U 7NA.
Company No. 06819047 FCA Register No: FRN 502635.

Hantec Markets is a trading name of Hantec Markets Limited who is authorised and regulated by the Financial Conduct Authority (FCA) in the UK. FCA Register No: FRN 502635.

The information and content provided on the website (“the Information”) you are going to access, has been compiled and presented in accordance with UK laws and regulations. The Information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use may be contrary to any of the laws or regulations of that jurisdiction. The products and services described herein may not be available in all countries and jurisdictions. Those who access this site do so on their own initiative, and are therefore responsible for compliance with applicable local laws and regulations. The release does not constitute any invitation or recruitment of business.

Hantec Markets does not offer its services to residents of certain jurisdictions such as Afghanistan, Belgium, Guinea Bissau, Iran, Israel, Libya, North Korea, Somalia, South Sudan, Syria, USA and Yemen.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 70% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you can afford to take the high risk of losing your money.