DAX Xetra (cash index)
Other equity markets have been busy breaking out, however despite the huge bull candle on Friday, the DAX remains in the confines of what is now a four week range.
A huge bullish engulfing candle has put the bulls in line for a test of the resistance of the range high at 11,371 however is there the momentum to drive the move?
Aside from Friday’s huge bull move, there has been little to really get the bulls going in recent sessions.
Momentum indicators have been drifting higher but only really within a ranging outlook.
This is reflected as much on the hourly as it is on the daily chart.
The legacy of such a strong candle on Friday has also not translated into trading on Monday which is subdued and trading a shade lower again.
Resistance from Friday’s rebound high at 11,323 is still in place, which is below 11,371 from earlier in the month.
It is only when looking at other markets such as the S&P 500, CAC or FTSE 100 when the bulls would get excited.
For now the DAX remains constrained.
- A close above 11,371 would finally be a positive break move and open 11,567 initially, although the 11,725/11,865 long term pivot band would then also be in play.
- There is a minor pivot support at 11,215 within the recent range which will now act as a gauge for bull control.