DAX Xetra (cash index)
A DAX recovery has been given a boost as the bulls were finally above to break the shackles with a breakout above the key pivot around 11,000 (support and resistance has ranged between 10,990/11,010 in recent months).
This has seen the recovery of 2019 move into a different phase after over a week of consolidating under the resistance.
A trend channel formation is now forming over the past few weeks which is now rising as a basis of support at 10,900 today.
Momentum indicators are increasingly positive with the RSI above 60 (having failed around here for months), whilst Stochastics are strongly configured and the MACD lines accelerating higher.
Corrections are a chance to buy.
The hourly chart shows the RSI is stretched and this could induce a near term unwinding move.
Today’s early slip back could help to renew upside potential.
- The pivot around 11,000 is now supportive, whilst there is initial support at 11,125 from intraday on Friday.
- Initial resistance is at Friday’s high of 11,217 but a continuation of the trend channel suggests that a move towards the long term major pivot resistance at 11,725/11,865 is now on.