EN 
DAX Xetra (cash index)
The bullish outlook on the DAX continues to be questioned as the consolidation of the past week has now broken the trend channel that has been supporting corrections since the turn of the year.
Despite this though, the “filling” of the gap at 11,149 which was once more seen yesterday, means that the recovery is still in play.
Whilst the support of the medium term pivot at 11,000 remains intact there will still be a good argument to say that that the market is in recovery mode.
However, it is a consolidation that is beginning to weigh on momentum indicators, with the Stochastics slipping below 80 and MACD lines beginning to plateau.
The RSI continues to hold around 60 in a move that suggests there is still not a corrective influence on the market yet.
So although the positive momentum has dissipated, there is still not a bearish influence yet, although this clearly needs to be watched.
- There is still buying pressure above 11,000, with yesterday’s intraday low at 11,051 before the market rebounded into the close to maintain the gap fill.
The early move today is a shade higher but is effectively just holding ground (perhaps more direction will come in the wake of Nonfarm Payrolls).
The hourly chart shows the bullish conditions (hourly RSI holding above 40 and hourly MACD lines consistently above neutral) are reflecting the more neutral conditions developing on the daily.
- Resistance remains at 11,321.
