DAX Xetra (cash index)
This remains a very cautious phase of trading on the DAX as the market creeps higher but with little real conviction.
The uptrend channel of the past two and a half months remains intact but there is also now a five week uptrend which the market is running up and is supportive today around 11,550.
Yesterday’s daily candlestick was especially tentative in its move higher, with initial gains slipping back into the close.
The market is still eyeing the resistance of the March high at 10,677 but once more this morning there is a lack of conviction in the market.
Despite this there is still a sense that corrections remain a chance to buy, with the RSI above 60 and Stochastics recently crossing higher again.
However, it is as though the market is waiting now for the next catalyst for a break above 10,677.
The hourly chart reflects the mild positive bias and a move back above a near term pivot at 11,555 which is an initial basis of support.
- Initial resistance at 11,635 before the 11,677 resistance.
- A breakout above 11,677 opens the long term pivot band 11,725/11,865.