DAX Consolidates As The Rally Runs Out Of Steam
Hantec Markets | Aug 17, 2018 08:44
DAX Xetra (cash index)
A rebound added 74 ticks yesterday is forming a positive candle, but in the context of recent selling pressure, this has been a relatively small reaction higher whilst today’s consolidation questions the longevity of the recovery.
Momentum indicators on the daily chart remain solidly correctively configured, with the RSI struggling under 40, MACD lines tracking lower and Stochastics bearishly positioned. This all suggests that the rally will struggle and to expect renewed selling pressure to take hold once more in due course.
- The June low at 12,104 may remain intact after the pick up from 12,120 on Wednesday, but this is likely to be retested as rallies remain a chance to sell.
- There is initial resistance at 12,295/12,323 under the old support at 12,400.
However, the hourly chart suggests the rallies struggle in the 45/55 region on the RSI whilst the MACD lines continue to reflect a negative configuration.
- The support is initially at 12,182 trying to protect a retest of the lows.
"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.
Original post
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.