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DAX Now Breaking Out But Still Needs The Confirmation

Published 20/02/2019, 10:18
DE40
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DAX Xetra (cash index)

The bulls are pulling the DAX higher through resistance, but breakout confirmation still needs to be seen.

An early February rally high at 11,371 has been breached on an intraday basis early today, but this needs to be seen on a closing basis to really break the shackles of the four week consolidation.

Reaction to Thursday’s sharp intraday move higher has been positive, with the gains being held and built upon.

It was interesting to see 11,371 being yesterday’s high to the tick before a drift back into the close.

This shows the importance the market is giving to this level.

Momentum is positive but without being overly strong right now, and the RSI which has been stuck around 60 for the past few days reflects this.

Despite this though, the early move above 11,371 today is a sign that the bulls are straining to breakout.

A positive configuration on hourly momentum shows this, whereby intraday weakness is now a chance to buy.

  • There is a near term support band 11,245/11,260 which is a gauge now as support above a mid-range pivot at 11,215.
  • A closing break above 11,371 completes a range breakout and implies around 410 ticks of upside.
  • This would mean a return into the long term pivot band 11,725/11,865 would be on.
  • The December high at 11,567 is an interim resistance.
  • Initial support is at today’s traded low at 11,338.

DAX Daily Chart

DAX Hourly Chart

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