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.

Selling pressure mounts on DAX with intraday rallies sold

DAX Xetra (cash index)

A corrective downtrend channel continues to pull the DAX lower as momentum in the resumed sell-off grows.

With a run of lower highs and lower lows taking hold, the market is now back below the support band 12,100/12,130 following a gap lower today.

Friday’s decisive solid bearish candle reflects the negative sentiment that is developing on the DAX which increasingly has intraday rallies being sold into.

The market gapped to the bottom of the trend channel today and this is a gap that needs to be filled at 12,103 but any move to unwind the initial sell-off today should be seen as another opportunity to sell.

A close below 12,100 today would certainly leave the market at risk of a retreat to test the 11,865 September low.

Momentum indicators are taking an increasingly corrective configuration now with the Stochastics accelerating lower, RSI below 40 and most concerning for the bulls, a MACD sell signal.

  • Initial resistance is at today’s initial high at 12,072 whilst the gap is still open at 12,103 and the hourly chart shows a sell zone of overhead supply around 12,170/12,190.
  • There is minor support at 11,952 which protects 11,865.

 

Richard Perry

Richard Perry

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