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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.

DAX again up against selling pressure into intraday rallies

DAX Xetra (cash index)

DAX rallies are a chance to sell as the technical outlook remains corrective and points towards a retest of recent lows.

  • The overhead supply around 11,000 seems to have put paid to last week’s recovery which has left a high at 10,988.

The filled gap in Friday’s session has been followed by a negative candle in yesterday’s session and the hourly chart there is a growing sense of a lower high now in place at 10,903 as intraday rallies are once more being sold into.

Daily momentum remains negatively configured on both a medium term and latterly a renewed near term outlook.

This is shown on the hourly chart where the hourly RSI failed at 60 and MACD lines have turned lower again.

Subsequently any unwinding move this morning is likely to come up against resistance that houses sellers once more.

  • Initial support is at yesterday’s low at 10,700 with a retest of the 10,585 is now likely to be seen.

The main caveat to this will come outside technicals with the FOMC decision tomorrow and a potential dovish climb-down which could induce a sharp recovery on Thursday.

However, for now the negative outlook for the DAX continues.

 

Richard Perry

Richard Perry

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