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 consolidating after decisive swing higher takes hold

DAX Xetra (cash index)

The recovery that has been threatening in the early sessions of 2019 really began to take off on Friday as a huge bull candle and positive session has seen the market rallying to a two week high.

A gain of over 3% in the wake of the US jobs report and dovish comments from Fed chair Powell has certainly shifted the outlook near term.

The move above the resistance band 10,585/10,700 now means that this is a basis of support for the bulls to reference in the recovery.

The improvement is really coming through in the momentum indicators, with the bull cross buy signal on the MACD lines, Stochastics accelerating higher and RSI also at one month highs.

An early consolidation has greeted traders this morning, but holding above 10,700 will now help to build on the recovery.

If this can be achieved then with the improvement in momentum, a move back towards the key medium term overhead supply and resistance around 11,000 could be seen.

On the hourly chart there is a slightly stretched RSI position which could induce a mild unwinding move which could be seen as an opportunity for the bulls.

  • Watch for the formation of support above the 10,585/10,700 pivot and renewed buy signal.
  • Initial resistance at 10,840/10,904.

 

Richard Perry

Richard Perry

Leave a reply

Recent Posts

Subscribe to our Market Analysis

Please use the boxes below to indicate if you would like to receive news, market analysis and information from Hantec Markets. Ticking yes, will direct you to our preference centre where you can choose the content of interest to you. From there you may also opt-out of receiving any communication. The choice is yours.

Your data is safe with us. Please read our Privacy Notice

Start trading now

Register now in 4 easy steps