DAX Rebounds As Support Of The Range Kicks In Again
Hantec Markets | Jun 20, 2018 12:29
DAX Xetra (cash index)
The key near to medium term technical support around 12,600 has held on the DAX and the bulls are now looking to build a recovery once more within the 600 tick range.
During yesterday’s sharp decline, the key factor was whether the support of the neckline of the base breakout, that had become a basis of support in recent weeks, would continue to hold.
The market tested the support (with a brief dip to 12,594 yesterday) but subsequently then rallied to close with a positive candlestick (given the close was 30 ticks above the opening level) and now the bulls are continuing to run higher today.
- Filling the gap at 12,780 will be the first task of the bulls now with early gains only tentative, however a move that closes above 12,780 today would actually be seen as positive within the range and would then re-open the mid-range pivot around 12,925 again.
Momentum indicators on the daily chart are reflective of a range play, with the RSI ticking up above 40 again and MACD lines still around neutral.
This is re-iterated on the hourly chat with the momentum indicators recovering following yesterday’s sharp downside move.
Continue to play the range whilst fluctuations in risk sentiment throws traders back and forth.
Another positive candlestick today would help with this move to unwind the market back towards the mid-range pivot again.
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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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