DAX Xetra (cash index)
The past week has been all about whether the bulls could sustain the momentum for a continued rally.
Resistance around 11,000 is clearly seen as a watershed for the rally which has failed to so far breakout.
- However, equally there is a basis of support that has formed above a pivot band between 10,585/10,700 that suggests the buyers have still got a handle on proceedings.
Yesterday’s session was interesting as the candlestick was negative in isolation (closed 70 ticks below the open), but the closing price was higher on the previous day, but also there was a gap fill which is positive.
- The pressure is growing on the 11,000 resistance.
The assertion that this is a key crossroads moment is reflected on daily momentum signals with the RSI still hovering around 50, Stochastics positively configured and MACD lines rising.
Today we see something of a positive bias but again perhaps the bulls are not quite ready, but perhaps they will be soon though.
Looking at the hourly chart, there is a bullish configuration on hourly RSI (holding above 40) and MACD lines (unwound to neutral) whilst also trading above all the moving averages.
- Initial resistance is at 10,948 this morning.
- Support is at 10,786 initially.