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Hugo in HTO Trading,

DAX 30: Losing the upward momentum

Since the beginning of the year the index gained more than 8.5% however last week ended flat with a minor gain of 0.04% and made a phase change, shifting from a bullish to a warning phase since late June.

Last week the German main index went back and forward without any clear direction and closed in the middle of the weekly range, in addition managed to close within the previous week range, which suggests being clearly neutral, neither side is showing control.

The stochastic is showing a strong bearish momentum although is still above the 50 mid line.

Expecting an upward move to 2017 high at 12,878 (scenario 1) on break above the previous inside week high at 12,491.5 however a bounce from the 2017 high at 12,878 may push the index down to a weekly support at 12,429 (scenario 2). A break below the weekly support at 12,096 would set in motion a deeper correction down to another weekly support at 11,432 (scenario 3).