DAX Xetra (cash index)
Moves on the DAX in recent sessions have helped to build a sense that a recovery could be brewing.
However, this near term move needs to now start to push decisively forward and make a key move on the resistance of the overhead supply around 11,000.
- For now, using the near term breakout above 10,700 as a basis of support is encouraging for the continuation of the recovery.
This is backed by strong moves through the momentum indicators, with the Stochastics rising strongly and the MACD lines accelerating higher.
The RSI above 50 is also encouraging.
This all points to near term corrections being a chance to buy for now.
- The hourly chart shows that 10,800 is initially a basis of support and a decisive move above 10,910 today would be a good indication that the run will continue towards the 11,000 old key basis of support through October/November which is now overhead supply.