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Sentiment of the DAX has flipped as bears grasp control

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

The failure of the breakout support and subsequent negative signals suggests that the corrective pressure is mounting.

During the early part of the week , the market had been set with consolidation and the concern that the breakout could be lost.

Yesterday’s sharp bear candle yesterday has begun the process of a retracement now as the choppy ranging moves of the past couple of months appear once more to be playing out.

The daily RSI has again peaked around 60 whilst the MACD lines have lost impetus and the Stochastics have posted a bear cross.

In a market that has so much form in false signals and ranging, this suggests that a top has been posted at 13,422 and that intraday rallies will struggle before the sellers resume control.

  • The old breakout at 13,336 had been a basis of support but now on the breakdown becomes a basis of resistance.

The early rebound today has failed just under 13,300 and the resistance at 13,336 is building now and rallies look to be a near term chance to sell.

  • Initial support comes with yesterday’s low at 13,219 but a retreat back towards the mid-range pivot around 13,150 seems likely now.
  • Furthermore, the history of this sideways ranging period suggests that once the DAX gets on a corrective roll a test of 13,000 support could also be seen.


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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.