DAX Xetra (cash index)
The drift of the past few sessions is now starting to be a move that the bulls need to take notice of as the support of the breakout at 11,556 has been broken.
This move still looks to be a near term unwind any overstretched momentum of the breakout and is likely to be a chance to buy.
Given the strength of the uptrend channel of the past two months, the outlook will remain positive and whilst the support band 11,370/11,440 remains intact there is little really for the bulls to be overly concerned by.
- From a near term perspective, the breakout gap at 11,524 has now been “filled” and if it is “closed” then there could be further slip back into a test of the 11,370/11,440 support band.
- The channel low comes in at 11,225 today.
Momentum indicators are slipping back now but all remain in positive medium term configuration.
The RSI is still above 60, whilst Stochastics are still above 80.
The hourly chart shows this is a drift back to support of a four week uptrend channel, whilst the hourly RSI is around 40 and MACD liens around neutral.
This is likely to be the source of the next chance to buy.