DAX Xetra (cash index)
The DAX continues to sit patiently at this crossroads of the resistance band 12,400/12,500 with the break in the coming days likely to be a key, outlook defining, move.
As the rally has moved over the past week, the bulls have gradually been losing their impetus.
Despite a positive candle on the day yesterday, the market closed with just a 1 tick gain and this consolidation has continued today.
This comes as momentum indicators just curb their recent recovery but the concern is that both the RSI and Stochastics are struggling in the mid-40s which runs the risk that this is a rally to be sold into.
- The resistance band of the overhead supply between 12,400/12,500 has limited the rallies in the past two sessions, with intraday moves higher failing in this range.
Concern would grow if the market now starts to post negative candles and the resistance of the three week downtrend (falling at 12,480 today) is an ever growing issue as well.
- The hourly chart shows this consolidation, but a decisive move below the support at 12,312 would increase renewed corrective pressure.
- Initial support at yesterday’s low of 12,345.
- Resistance at 12,439 from yesterday’s high.
"DISCLAIMER: This report does not constitute personal investment advice, nor does it take into account the individual financial circumstances or objectives of the clients who receive it. All information and research produced by Hantec Markets is intended to be general in nature; it does not constitute a recommendation or offer for the purchase or sale of any financial instrument, nor should it be construed as such.
All of the views or suggestions within this report are those solely and exclusively of the author, and accurately reflect his personal views about any and all of the subject instruments and are presented to the best of the author’s knowledge. Any person relying on this report to undertake trading does so entirely at his/her own risk and Hantec Markets does not accept any liability. "