DAX Xetra (cash index)
The market has become increasingly choppy in recent sessions as newsflow has driven daily moves both higher and lower, however technically the outlook remains corrective.
Although the sharp two week downtrend has been broken (it was never likely to last for too long at that pace of decline) however the negative candles continue to some through and the potential of a sustained rally is still some way off.
Even though the market closed 130 ticks higher, Friday’s rebound candle closed marginally below the open to leave the bulls a bit in limbo, whilst the opening gap lower today reclaims the outlook for the bears.
- There is a gap to be filled at 12,260 still, but there is a configuration for selling into strength still.
Daily momentum indicators remain correctively positioned and have slipped back again on a near term basis, as the RSI is stuck below 40, MACD lines falling and Stochastics ticked back lower.
- The hourly chart shows resistance at 12,440 has been bolstered as Friday’s rebound failed at 12,383.
- Although Thursday’s low so far remains intact at 12,104 look to use any unwinding strength as a chance to sell
- The hourly momentum is negatively configured and expect further pressure on 12,104 and a move back to test the medium term implied target at 12,000 in due couse.
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