DAX Xetra (cash index)
The uncertain outlook continues on the DAX as another volatile session saw the market close lower, but once more today we see the market reacting higher.
Taking a step back there is still a run of lower highs over the past four weeks, with a downtrend coming in at 11,580 today suggesting the rallies are still seen as a chance to sell.
Momentum indicators are still mixed, but it is interesting to see the Stochastics starting to accelerate in their tracking lower, whilst the RSI is stuck under 50 and MACD lines limp on.
- The market has closed for the past couple of sessions within the 11,400/11,460 near term pivot band and once more today the initial moves are within this band.
- Wednesday’s high at 11,567 is another lower high, whilst yesterday’s high at 11,500 adds to the resistance.
There is a continued sense that the market will continue to edge lower on a net basis, with a retest of yesterday’s low at 11,255 preferred as strength is seen as a chance to sell.
The hourly chart reflects the mild negative bias in the market.