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.
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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 hangs on to the channel to push higher once more

DAX Xetra (cash index)

After teetering on the brink through much of yesterday’s session, the bulls have clung on and look ready to reap the benefits.

The uptrend channel was severely tested during a negative session, but the integrity of the channel held on the close, but coming as Friday’s gap higher was bullish filled, this is a key move that suggests the bulls are ready to break higher.

Today’s early move higher reflects this.

Momentum indicators are positively configured, with the RSI rising above 60, MACD lines still rising strongly and Stochastics above 80.

  • Resistance of Friday’s peak at 11,321 is being eyed now and a closing breakout takes the DAX to another eight week high and continues the way towards the December high of 11,567.
  • A break above 11,321 would also mean that yesterday’s low of 11,132 becomes another higher low, whilst also boosting the importance of the pivot around 11,000.
  • There is a small breakout gap open at 11,215 this morning which may be filled initially, however the bulls look well positioned now.

The hourly chart shows the buying pressure resuming at the levels where throughout January has been key, with around 40 on hourly RSI and around neutral on hourly MACD again holding firm.

Richard Perry

Richard Perry

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