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.

DAX bulls position for breakout but resistance remains for now

DAX Xetra (cash index)

Can the DAX join other major global markets in breaking higher?

The range that has broadly formed above the medium term pivot at 11,000 is seeing its resistance at 11,371 eyed, but as yet a breakout is not forthcoming.

Looking at the momentum indicators though there is a sense that a breakout is imminent.

The Stochastics continue to climb towards strong configuration, whilst the MACD lines are ticking higher.

Given the US public holiday yesterday, it is difficult to read too much into a small ranging candle with a dead flat close.

However, the bulls have had a go this morning and pulled back again from 11,355.

The hourly chart is positively configured on momentum suggesting weakness is a chance to buy.

  • There is support at 11,260 initially which is holding this morning whilst there is a mid-range pivot at 11,215 which is also a gauge for sentiment.
  • A close above 11.371 opens the upside once more with the December high at  11,567 and the long term pivot band 11,725/11,865 being the next basis of resistance.

 

Richard Perry

Richard Perry

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