DAX Xetra (cash index)
Although consolidations continue to be a chance to buy, the bulls are still waiting for a catalyst for the next push higher on the DAX.
Yesterday’s positive candle helped to build on the support once more with the breakout at 11,556 forming the support for the rebound off 11,551.
There is little to suggest this will not just be the precursor to the next leg higher, although the early slip lower again today implies that the bulls are still not quite ready.
There is a continued strong set up across momentum indicators with RSI in the mid-60s, MACD lines rising and Stochastics solidly above 80.
The hourly chart shows similarly positive set up even in spite of a recent consolidation.
- The bulls will be looking for a breakout above 11,677 which is the recent high, although that then puts the market on course for 11,725/11,865 which is the longer term pivot band and key overhead supply.
- The bulls remain in control of the uptrend channel whilst trading above the 11,370 breakout, with the channel support currently way down around 11,200.