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Is DAX Ready To Build Sustainable Support Again?

Published 14/11/2017, 10:07
Updated 09/03/2019, 13:30

DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)

The sell-off continued during yesterday’s session but there are increasing signs of support having now been formed.

Is the correction now over?

The initial answer is that there needs to be more evidence of sustainable support before being confident of moving back into long positions.

Yesterday’s bearish candle closed well above the low of 12,958 into the top half of the session.

  • This move has also bounced back above the previous support band 12,900/13,090 which is taking on added importance on a medium term basis now.
  • Today’s gains are early in the session but a move to close back above 13,090 would be a positive sign.

Momentum indicators on the daily chart are just beginning to now slow their correction which is interesting as the RSI is ticking higher just under 50.

The caveat is that support looked to be forming early in yesterday’s session only for a strong sell-off subsequently coming though.

However there are signs of improvement on the hourly chart.

If the hourly RSI can push and hold above 50 and the Stochastics bolster above 80 with the hourly MACD lines above neutral then the outlook will begin to look far more positively configured.

  • Resistance comes in at yesterday’s high of 13,160 which is then added to in the range 13,190/13,250.
  • Today’s traded low at 13,074 is initial support above 12,958.

FDXZ7 Daily ChartFDXZ7 Hourly Chart

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.

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