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DAX Continues To Unwind With Key Pivot In Focus

Published 18/06/2018, 08:50
Updated 09/03/2019, 13:30

DAX Xetra (cash index)

Traders are seeing an unwinding move on the DAX that has come in the wake of the sharp gains from the dovish ECB move.

After the huge bull candle of Thursday, there was a decisive retracement move back on Friday which cut almost 100 ticks off the market.

However this is a move that has now unwound back towards what is now becoming a key technical level with a pivot around 12,925.

Taking the moves over the past month as a range broadly between 12,600/13,200 then the pivot around 12,925 is almost in the middle of this range.

Subsequently this becomes a gauge for the near term outlook.

This initial move to the downside is testing the pivot this morning and a close below the pivot would turn the market increasingly corrective again within the six week range.

Momentum indicators are rolling over and momentum from the strong move higher has certainly waned.

  • There is initial resistance with today’s traded high at 12,982 whilst there is also a gap that is now open at 13,010.
  • A close below 12,925 would open a retest of Wednesday’s low 12,780.

GDAXl Daily ChartGDAXl 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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