DAX Xetra (cash index)
A break of the recent trend lower, but the bulls will be viewing the gains of recent days with some caution and the outlook for a sustainable recovery is still in question.
Monday’s jump higher actually contained a negative candlestick pattern for the session, whilst yesterday’s session closed well off the session highs and was actually close to forming a shooting star.
Subsequently, today’s session is looking decidedly cautious.
Early gains at the open have faded and the recovery on daily momentum indicators are losing their recovery momentum again.
The concern with how this move higher has progressed rises with the fact that yesterday’s high coinciding almost entirely with the resistance of the old low at 12,918 as the market peaked at 12,925 yesterday.
Interestingly, also this high came at the 21 day moving average which has rolled over (today at 12,902) and has often been used as a basis of support and resistance in recent months.
- There is still a trend of higher session lows over the past three sessions and this means that yesterday’s low at 12,753 will be the initial support to watch today.
- The hourly chart shows a retreat back around a 12,800 pivot which means that consistent trading below today would also be a negative implication today.
- A move below 12,692 would re-open the key near term low at 12,547.
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.