DAX Xetra (cash index)
An early rebound on Monday morning has helped to improve what had looked like an increasingly concerning outlook for the DAX, but is it enough to subdue the bears on a sustainable basis?
The market has bounced from 11,499 to leave this as a potential higher low above the key 11,459 October low, however much more needs to be done for the confidence to turn around on a consistent basis.
Long term overhead supply around 11,726/11,865 put paid to the rebound last week and is still an issue.
Momentum indicators remain negatively configured (even if they are less precariously positioned for the bulls) and there is still a negative bias for selling into strength.
A move above 11,865 is the minimum that a recovery needs.
As for the immediate uptick, there is a gap open at 11,617 that still needs to be filled, whilst the hourly chart shows a pivot around 11,700 with the underside of the old downtrend channel (which is consistently providing resistance) at 11,720 today).
Posting a positive candle today would help improve the sentiment too, but far more is needed to prevent this rally from being sold into once more.