DAX Xetra (cash index)
Cautious optimism is taking hold for the DAX once more as another positive candle formed yesterday to build confidence in the near term outlook once more.
Finding support at 11,487 yesterday to find buyers willing to push forward throughout the session implies an improving sentiment.
This has carried into towards session which is now pushing towards a test of the initial resistance at 11,618 which wold open a test of the 11,677 March high.
There is an uptrend which has formed in the past month which is helping to underpin the market now, today at 11,520.
Momentum indicators are set up to tick higher again on the daily chart, with the RSI back above 60 and Stochastics crossing higher around neutral.
- A close above 11,618 today would be encouraging, but the real move would be a close above 11,677 would open the long term pivot band 11,725/11,865
- As long as the support band 11,370/11,415 remains intact, there is a sense that corrections are a chance to buy.