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.

Negative pressure grows on DAX as rallies are being sold

DAX Xetra (cash index)

The negative sentiment on the DAX continues to slip through the market as the bear drift backwards under the three and a half month downtrend.

Within this move, intraday rallies remain a chance to sell.

Even though, the market looked set for a decent recovery yesterday, the move sold off into the close to leave resistance at 12,349 and the market has dropped back lower in early moves again today.

A strong US Non-farm Payrolls report could be a trigger for further selling pressure on the DAX.

Technically the corrective signals on the momentum indicators are increasingly concerning, with the Stochastics dropping decisively, RSI below 40 and MACD lines are on the brink of a bear cross under neutral.

  • These are still suggesting a retreat back to 12.100/12,130 and a close below there would open the September low of 11,865.
  • Today’s traded high of 12,245 is initial resistance now.

The hourly chart reflects the bearish drift of lower highs, lower lows and momentum indicators implying rallies are a chance to sell.

 

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