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 pressure once again as any strength is sold into

DAX Xetra (cash index)

The bearish outlook across equities markets continue and the Fed decision last night has certainly not helped to change this view.

The DAX has been struggling under 11,000 once more this week but a mini consolidation in recent days may have had the bulls dreaming of a Santa Claus rally.

So, such luck it would seem as the market has gapped sharply lower once more today.

Although there is now a gap to fill at 10,750 any rallies should be seen as a chance to sell.

A close below 10,585 (which was the recent December low) would simply continue the market on its way towards the long term target of 10,150.

Momentum indicators are decisively negatively configured but are also falling with downside potential.

  • There is a basis of support around 10,400 from December 2016 but this is little reason to form a floor.
  • Overhead, there is resistance of the low earlier in the week at 10,700, meaning that 10,700/10,750 is an ideal sell zone.

 

Richard Perry

Richard Perry

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