DAX Xetra (cash index)
It was a very positive reaction to a potential early slip on equities yesterday as the bulls continued to back weakness as an opportunity.
A correction was bought into and the market closing at the high of the day suggests there will be pressure on the resistance around 11,000 now.
This comes with the continues improvement in momentum indicators with the RSI above 50 and Stochastics the strongest since September.
The move also means that yesterday’s low at 10,788 is now a support of note above the near to medium term pivot band 10,585/10,700.
Trading early in today’s session is one of consolidation and little real direction as yet, but indicators on the hourly chart show that there is still a positive bias to momentum which suggests intraday weakness is a chance to buy.
The hourly RSI above 50 and MACD lines above neutral along with accelerating Stochastics is encouraging still for today’s session.
- Initial resistance is 10,961 just shy of the broader resistance band around 11,000 which is a key barrier that the bulls still need to overcome.
- A higher low above 10,700 at 10,788 would be confirmed on a move above 10,961.
- A close above 11,000 opens next resistance at 10,175/10,200.