DAX Xetra (cash index)
Following Monday’s strong recovery session the market is settling into more of a consolidation mode.
Yesterday’s slight loss on the day showed through as a bearish candle following the strong open and it is interesting to see a similar candlestick forming today.
This is all playing out under the resistance of the pivot band 11,400/11,460 so the prospect of this recovery quickly running out of steam is growing.
The downtrend of the past eight weeks is in the process of being broken, but this is not being met by huge buying pressure and the momentum indicators remain negatively or neutrally configured on a medium term basis.
The resolution of this consolidation will be a key near term move.
- A closing break above 11,460 will re-open the highs between 11,567/11,690.
- Support is with yesterday’s low initially at 11,264 whilst a gap from 11,206 is also still open.
- The hourly chart shows today’s low at 1,285 is also supportive.