DAX Xetra (cash index)
A recovery on the DAX continues to gather momentum as another jump higher in early moves today further strengthens a growing uptrend rally.
This comes with momentum indicators posting increasingly positive signals as the Stochastics accelerate higher, the MACD lines complete a bull cross and the RSI moves to a four week high.
With a gap higher at the open today (11,575 would fill the gap from yesterday’s high) the uptrend of the past week comes in to support the market at 11,445 today.
This coincides with the support band of 11,400 (an old long term pivot) and 11,460 (previous October lows) and with momentum indicators continuing to improve, intraday corrections are now seen as a chance to buy.
- The rally is on course for a return to the old key lows 11,726/11,865 which is now a band of overhead supply.
- The hourly chart reflects the improved momentum of recent days and any unwind into 11,500/11,575 looks a chance to buy.
- Initial resistance is today’s early high at 11,651.