DAX Xetra (cash index)
There is a continuation of the support that has formed above the medium term pivot at 11,000 but can the bulls find the traction for an upside break?
In each of the past four sessions, there has been an intraday move to “fill” the gap at 11,149 and on each occasion that market has closed above the gap as the buyers appear happy to support.
However, can this now be translated into the DAX joining other major global indices in pushing higher?
Perhaps so, as the early move higher today is showing decent gains and the bulls are eyeing recent highs.
- There is a shallow downtrend of the past three months which comes in at 11,290 today which is a first barrier to breach.
- Last week’s high was 11,311 whilst the rebound high from January sits at 11,321 as resistance.
Momentum is showing a mix of signals.
There is a positive bias to the RSI which is ticking back above 60 today, but the MACD lines need to be more convincing but the Stochastics still need to be watched as they are still in a negative drift.
- A closing break above 11,321 would be the move the bulls are waiting for, opening the December high of 11,567 as the next test, but also would be back on the path towards the longer term pivot band 11,725/11,865.
- All the while, there is encouragement that the support has continually come in above the 11,000 pivot whilst the support is at 11,050 in the past week.
- The hourly chart shows that there is a ranging look still of the past week, whilst breaking above the highs of the past couple of sessions at 11,209/11,219 is near term supportive.