DAX Xetra (cash index)
A positive session on Monday and a second positive daily candlestick suggests that the bulls are in recovery mode once more.
Maintaining the support band 11,370/11,415 has been key to this in helping to maintain the outlook that corrections remain a chance to buy within this uptrend channel.
Now, this morning, an intraday move above a near term pivot at 11,556 has shown the bulls are looking to take control again, and this pivot will be seen to be a gauge of near term strength.
A close above 11,556 today will be a positive development.
However, this comes as the initial pull higher has retreated back to the pivot.
Hourly chart momentum indicators reflect the improvement, with the hourly RSI above 60 for the first time in over a week, but, already this morning the move higher is losing momentum ( a negative daily candle is currently forming).
- Initial resistance is now today’s intraday high at 11,618 which now protects a test of the recent highs at 11,652 and 11,677.
- Despite this though, there is an improvement that is trying to come through now and the bulls are undoubtedly now eyeing the next breakout towards a test of the long term pivot band 11,725/11,865.