DAX Xetra (cash index)
What a turnaround!
The negative sentiment that had been seeping back into the DAX in the past week has been smashed out of the water this morning as global equity markets have taken a significant risk positive tone from the G20 at the weekend.
The DAX has now got a huge bullish gap higher that is open at 11,315 as the market has jumped almost 300 ticks higher this morning.
Whether this gap will be filled is now the question, but it does look like a breakaway gap (which can often be seen at the beginning of a strong market move).
- The move back above the pivot band 11,400/11,460 is also an important step for a recovery (this is now a basis of support in the coming days).
The momentum indicators are now ticking strongly higher with the move, as the RSI is rising above 50, whilst MACD and Stochastics are also ticking positively too.
It does all suggest that weakness will now be seen as a chance to buy.
- The resistance of the November highs 11,566/11,690 are now the key test, whilst there is also crucial long term overhead supply between 11,725/11,865 that needs to be overcome for this to be a sustainable recovery.
For now the bulls are sitting happily though.