DAX Xetra (cash index)
The run of negative candles continues on the DAX.
In four of the past five sessions there has been considerable disappointment into the close whereby the market closes either strongly lower and/or well off the highs of the day.
Long lower shadows on the candles in recent sessions show that the sellers remain in control, whilst the succession of lower highs in the past few weeks (that has now formed a four week downtrend) show that intraday gains continue to be seen as a chance to sell.
That suggests that today’s early move higher needs to be treated with considerable caution.
There is still a corrective configuration to momentum with the Stochastics tracking lower, RSI under 50 and MACD lines losing impetus in a rebound.
- The pivot band 11,400/11,460 is now a basis of resistance initially but the trend lower comes in at 11,570 today, which coincides with another lower high.
- The market has been making consistent lower lows with Friday’s 11,233 supportive above 11,051.