CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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. 70% 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 continues to fall as outlook deteriorates further

DAX Xetra (cash index)

The bulls remain under enormous pressure as the negative candles continue to rack up and any hint of intraday gains are sold into.

There have now been nine daily candlesticks in a row which have been bearish within the session, meaning that the close has been below the open.

This reflects the lack of any positivity in the market right now and means that any intraday strength remains a chance to sell.

The breakdown below 11,009 has taken the DAX to a new two year low and continues the downside that now targets potentially as low as 10,150.

The market has gapped lower at the open today and this means that resistance is initially at 10,788 (which was also Friday’s close).

  • There is an old trading band between 10,175/10,800 which the market is now in, with the next real support at 10,400.

Momentum is negative but with the RSI around 30 this could potentially limit immediate downside.

  • However, any move into the band of overhead supply now 10,788/11,000 should be seen as a selling opportunity.

 

Richard Perry

Richard Perry

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