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 under increasing pressure as bullish arguments fall away

DAX Xetra (cash index)

The bulls have lost control of the recovery as the DAX has decisively breached the key breakout support at 11,370.

This now runs the risk of the DAX turning increasingly corrective once more.

Since the early high of 11,823 the market has fallen over 450 ticks in the past few sessions, and has gapped lower once more today.

A move below 11,415 has breached a run of higher lows and also breached the support of the three month uptrend and comes with increasing deterioration in momentum indicators.

The RSI falling below 40 would be a real concern, as would the MACD line falling below neutral.

Both conditions are not there yet.

With 11,823 now seen as a key resistance (interestingly in the middle of the long term pivot band resistance 11,725/11,865) here is a lower high from Friday at 11,624.

  • A closing and decisive breach of 11,370 opens the old pivot band at 11,000 again.
  • It will be interesting to see how the market reacts to the old support band at 11,370/11,415 and whether it becomes a basis of new resistance today.
  • A close back above 11,415 would improve the position, but only above 11,624 would be a real signal that the bulls are bouncing back.

 

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