DAX Xetra (cash index)
A renewed sense of optimism is gaining more conviction as a day of consolidating an initial breakout yesterday has been followed by another move higher at the open today.
The recovery back above the 11,000 medium term pivot has been a key move and the bulls seem set to build upon their improved position.
Momentum indicators are reflecting this as they tick higher again with the Stochastics cross higher, the RSI rises above 50 and MACD lines settle above neutral again.
- The bulls will be eyeing the February high at 11,371 however the hourly chart shows a pivot to be aware of around 11,215 in the past three weeks which needs to be overcome first.
- A decisive move above 11,215 would re-open the 11,371 but it is interesting to see this pivot being a basis of an early ceiling today.
For the bulls, there is a basis of support near term with yesterday’s tight trading range 11,116/11,164 and this will be seen as a gauge for the progression of the recovery now.
There is a technical improvement on the DAX of late, but looking across the course of the past few weeks there is a sense of caution that needs to be taken with this rally.