DAX Xetra (cash index)
A recovery on the DAX continues to progress this morning as another positive candle completed to open further gains.
The move to close above the old June/August lows around 12,100/12,120 with improving momentum and suggests the bulls are now in full flow.
An intraday slip to 12,064 was decisively bought into yesterday to leave a decisive bull candle yesterday and another positive open today simply adds to the increased confidence that the outlook is increasingly one to buy into weakness.
There is upside potential on momentum, with the MACD bull cross, Stochastics rising decisively and RSI only in the mid-40s when previous bull runs have hit 55/60.
- The next resistance to really hit comes between 12,300/12,400.
- Furthermore the market has now left a near term higher low at 12,040 (which was Monday’s low).
On the hourly chart the momentum is strongly configured now with the hourly Stochastics positively positioned, RSI finding buying support around 50 and MACD lines positive.
- There is a mini uptrend channel also forming now, which comes in this morning at 12,075 meaning that buying into weakness is on, with 12,130 an initial pivot support to look for opportunities.