DAX Xetra (cash index)
The fall back in the past few sessions has not broken the positive medium term recovery outlook but the bulls will be getting increasingly nervous.
Negative candles have dragged that market back and broken below previous breakout supports between 11,555/11,677, whilst intraday bounces are being sold into.
An early move higher today has been sold into (on the very disappointing flash Eurozone PMIs) and the support of the 2019 uptrend channel at 11,440 is now very much into view.
Yesterday’s low at 11,468 seemed to be a level of note, but now this has been broken as the DAX has sold off this morning.
- The key breakout band of support to watch now comes in the range between 11,370/11,415.
The concern is that with momentum indicators beginning to deteriorate sharply, this level could now come under threat as the RSI and Stochastics accelerate to new five week lows.
- Yesterday’s gap lower from 11,596 looks to have been bearishly “filled” now as resistance from today’s high has been left at 11,624.
Hourly indicators are also increasingly correctively configured.