DAX Xetra (cash index)
The bullishness of breakout of the DAX has just been curbed this morning, but is it just another chance to buy?
Support of the trend channel held very well last week and the market used the pivot at 11,000 as a springboard for the breakout above initial resistance at 11,217 to continue the January recovery.
Momentum indicators are strongly configured, with the RSI above 60, MACD lines rising above neutral and Stochastics positively positioned, so corrections are now a chance to buy.
- There is a gap open at 11,149 and a breakout support band 11,149/11,218 and it is interesting to see the market supported in this band during the early slip back today.
- The channel is supportive at 11,107.
The hourly chart shows any unwinding move back towards 40 on the hourly RSI has been supported throughout this month, whilst neutral is supportive on the MACD lines.
- There is an outlook to suggest the continuation of the trend channel will see the market moving higher in the retracement back towards the long term breakdown pivot at 11,725/11,865.
- Initial resistance at 11,321 from Friday’s high.