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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% 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.

Are technical rallies still a chance to sell the DAX?

DAX Xetra (cash index)

Yesterday’s recovery positive candle was an admirable attempt by the bulls, but the move is still likely to simply be seen as another chance to sell.

Theoretically, closing the gap at 11,230 is a positive development, however if this is now backed up with a negative candle today there will be significant reservations over the longevity of a rebound.

The hourly chart suggests that the band around 11,230 is an area of near term overhead supply and it is interesting to see the market falling back around this resistance today.

Although Thanksgiving in the US gives the moves in today’s session less clarity, there is still a corrective configuration to momentum and the early slip back today could reflect a bull failure.

Could this be shifted though with a prospective bull cross on the Stochastics edging through?

It is far too early to go on just one potentially positive momentum signal and hence the failure of the rebound this morning is more of a concern.

  • With a mini trend lower over the past week still in play, testing the recent low at 11,009 is still favoured.
  • Subsequently, there is resistance in the band 11,230/11,310 as a near term sell zone.
  • Yesterday’s low at 11,113 is initially supportive.

 

Richard Perry

Richard Perry

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