DAX Xetra (cash index)
Inching towards the end of the week, the DAX is still edging higher and holding on to the breakout above the 11,371 previous range resistance suggests the outlook is positive.
The breakout implies around 410 ticks of further gains in the coming weeks towards the long term pivot band 11,725/11,865.
Momentum indicators are broadly positively configured (RSI above 60, MACD lines tracking higher again above neutral, Stochastics strong above 80), the bulls are tentatively pushing forward.
Holding on to the breakout above 11,371 will retain the positive outlook whilst weakness is now a chance to buy.
- The hourly chart shows strong configuration across momentum indicators and a band of support between 11,265/11,371 that will be used as a near term “buy zone” but the bulls are not giving too much up yet and are still positioned for continued upside.
- The big eight month downtrend resistance comes in at 11,535 today and is the first real test for the bulls, whilst the December high comes in at 11,565.
The outlook will be a touch more mixed should this week’s ow at 11,245 be breached as support but for now the outlook is positive.