DAX Xetra (cash index)
A mixed near term outlook is developing on the DAX as the selling pressure seems to have abated in the past couple of sessions, however can the bulls begin to build for a recovery?
Yesterday’s mildly positive candlestick has been followed by a consolidation move today (mostly due to the US public holiday today), but interestingly, the market bullishly filled yesterday’s opening gap higher and this is helping to improve the near term outlook.
- However, resistance is building at 12,440 (with yesterday’s high at 12,428) and this is a level that the bulls will now be eyeing to generate momentum in a rally.
- Momentum indicators are ticking mildly higher in an improvement, RSI above 40 and Stochastics slightly rising but effectively this simply represents a consolidation on the price which is between 12,104/12,440.
Today’s session is unlikely to give much of an indication of direction and trading below all the moving averages in addition to negative medium term configuration on momentum indicators suggests that rallies remain a chance to sell.
The hourly chart has unwound bearish momentum indicators and is positioning more neutrally for now.
- Initial support is 12,300 and then 12,225.
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