DAX Xetra (cash index)
The bulls have lost control of the recovery as the DAX has decisively breached the key breakout support at 11,370.
This now runs the risk of the DAX turning increasingly corrective once more.
Since the early high of 11,823 the market has fallen over 450 ticks in the past few sessions, and has gapped lower once more today.
A move below 11,415 has breached a run of higher lows and also breached the support of the three month uptrend and comes with increasing deterioration in momentum indicators.
The RSI falling below 40 would be a real concern, as would the MACD line falling below neutral.
Both conditions are not there yet.
With 11,823 now seen as a key resistance (interestingly in the middle of the long term pivot band resistance 11,725/11,865) here is a lower high from Friday at 11,624.
- A closing and decisive breach of 11,370 opens the old pivot band at 11,000 again.
- It will be interesting to see how the market reacts to the old support band at 11,370/11,415 and whether it becomes a basis of new resistance today.
- A close back above 11,415 would improve the position, but only above 11,624 would be a real signal that the bulls are bouncing back.
"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. "