DAX Xetra (cash index)
The outlook changing impact of the recent breakout remains on track.
A trend higher of the past eight sessions remains intact and the bulls have still got a grip on the recovery despite a negative candle from yesterday.
Having broken out through the overhead supply between 12,400/12,500 the market is now eyeing a challenge of the resistance of the old 12,600 pivot but shied away yesterday on an initial test.
Posting a bear candle yesterday is a blot on the copybook but has not yet derailed the recovery as the early move higher suggests buyers are still prepared to come back in.
The trend support is at 12,460 whilst the momentum indicators are still in their recovery configurations.
- This suggests that weakness remains a chance to buy for continued pressure on 12,600.
- A closing breakout above 12,600 opens 12,738 initially as a continuation of the recovery trend.
- The hourly chart reflects the improving momentum whilst there is a band of support 12,435 (near term pivot) and up towards 12,500.
Any slip to unwind the hourly RSI towards 50 and a subsequent consolidation is a chance to buy.
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