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 remains under pressure as 2019 kicks off

DAX Xetra (cash index)

As we come into the new year, rallies remain a chance to sell for the DAX.

Breaking the support of the early December low at 10,585 in the final days of 2018 has meant that this became a basis of resistance, something that was seen pretty much to the tick with the rally on 31st.

However, the first trading day of the year, the move has simply fallen over again and a four week downtrend is tracking the market lower, today at 10,525.

Momentum is confirming this move, with the MACD lines consistently in decline, whilst the RSI is struggling under 40 and Stochastics well set in bear territory.

The hourly chart shows momentum again rolling over with the RSI failing between 50/60, MACD lines rolling over under neutral and a sell signal on hourly Stochastics.

  • A retest of the low at 10,279 is likely, whilst the long term implied target at 10,150 remains on.
  • Initial resistance with today’s high at 10,483 below the 2018 close of 10,5559.
  • Initial support at 10,387 is the early low from today.

 

Richard Perry

Richard Perry

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