DAX Xetra (cash index)
The run higher has hit the skids a bit today as the DAX opened higher only to have the reins pulled again.
For now this is only a pause within what still looks to be a run to test the 11,824 resistance, however, given that resistance of the last two sessions (admittedly today’s is still very early) is at 11,706 and a shade under the 11,725/11,865 long term pivot, this needs to be taken with caution.
It will be interesting to see how the bulls respond to not only the long term pivot band but also the fact that there is a gap still open at 11,549 which still is likely to be filled.
There is a more positive configuration to momentum now which is swinging higher with the Stochastics accelerating higher, RSI up to 60 and the MACD lines close to a bull cross.
- Corrections should be seen as a chance to buy and pressure on the overhead resistance at 11,824 should continue.
- Initial support shown on the hourly chart is building with yesterday’s lows at 11,612/11,630 which comes around an old pivot at 11,625 form trading throughout March.
- A close back above 11,706 helps to open the recent high and pressure the pivot resistance 11,725/11,865.
- A breakout above 11,865 opens the September highs around 11,450 but also forms a big base pattern.