DAX Xetra (cash index)
A cautious look to the DAX in the past couple of sessions as the bulls have stuttered in their attempt to kick start the recovery again.
The uptrend channel is still a guiding hand for the bulls to make gains, whilst momentum indicators are positively configured on a medium term basis to suggest that weakness is still a chance to buy.
Although the negative candlestick from yesterday’s session suggests that the bulls are not quite ready for the next leg higher, the important basis of support comes with the breakout above 11,370 and the pullback 11,415 which gives a near term buy zone 11,370/11,415.
Whilst this holds as support on a closing basis, the bulls will retain a degree of control in the recovery.
Today’s cautious consolidation again suggests that there is a pause button pushed, and this is reflected in the flattening daily momentum and an increasingly neutral configuration on the hourly chart.
- There is still a gauge to watch on the hourly chart with a pivot around 11,556 and a move above here that is held would be a positive signal that the bulls were beginning to get going again.
- Subsequent resistance is yesterday’s high at 11,618 and 11,677.