CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.

Breakout on the DAX opens the long term pivot band

DAX Xetra (cash index)

The DAX has finally joined other major markets in breaking to new multi-month highs again to open the way for further recovery.

This comes as the market has closed above the resistance at 11,371 which completed a range breakout and imply around 410 ticks of additional recovery.

It now means that a retracement into the long term pivot band 11,725/11,865 is now a realistic possibility.

There is a strength to the momentum indicators with the RSI rising into the low 60s, MACD lines tracking higher and Stochastics into strong bull configuration.

A test of the long term downtrend of the past 8 months (currently at 11,545) is now due.

  • Weakness is a chance to buy, with the old resistance of the breakout at 11,371 now being supportive.

The hourly chart shows positive configuration on momentum with 40/50 on the hourly RSI being a basis of support and MACD lines consistently above neutral.

  • There is a band of support 11,260/11,325 now.
  • Initial resistance is at today’s traded high of 11,448 with the December high of 11,567 subsequent to that.

 

Richard Perry

Richard Perry

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