CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% 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. 65% 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 corrective momentum beginning to take hold

DAX Xetra (cash index)

After a few days of consolidation the DAX is suddenly coming under selling pressure, but has the outlook changed?

It would seem as though with the early break of the two week uptrend this morning and a move to a one week low, the market is turning into corrective move now.

The implications of this coming with the RSI again failing last week at 60, MACD lines only having unwound to neutral and the Stochastics giving a negative cross (although not yet confirmed as a sell signal), could now mean that momentum really does start to build for a slide back towards the old pivot band 12,100/12,130.

There is an old support at 12,300 which is a near term gauge on the hourly chart which coincides with the recent recovery uptrend.

  • With the hourly chart showing a pivot is initially now 12,300/12,335 as resistance and a failure to reclaim a close above this level would be confirmation of a corrective near term signal.

The positive configuration that was previously present on the hourly RSI is turning increasingly negative again and if the hourly RSI is consistently under 40 but also failing in rebounds under 60 this would add to the corrective momentum.

  • There is now a run of lower highs on the hourly chart, with the latest being 12,389.
  • The next support in the move lower comes in at 12,184.

 

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