DAX Xetra (cash index)
The bulls have seen a remarkable resurgence in the past few sessions with the market jumping higher again in the early moves today.
It is interesting that this rebound in the past week has been the second time during the rally of the past three months, where a breakdown of support below a previous key pivot support has been a false move.
- Closing decisively back above the 11,370/11,415 pivot with a strong bull candle on Friday now sees the market gapping higher above an old pivot level around 11,625.
- This puts focus back on the March high at 11,824 whilst the long term pivot at 11,725/11,865 again will be a target.
With momentum indicators swinging positively there is a renewed sense of vigour for the bulls.
The Stochastics are accelerating higher from a cross buy signal, whilst the MACD lines are turning higher above neutral and RSI is pushing towards 60.
This all suggests intraday weakness is a chance to buy.
- There is a gap still open at 11,549 from this morning’s move which will still need to be filled, but the bulls will be looking out for their next opportunity.
- The hourly chart shows support in the band 11,550/11,625 whilst there is little real resistance until 11,824.