DAX Xetra (cash index)
The bulls have failed to take the positives out of the huge Wall Street rally and the resistance of the 11,400/11,460 pivot is proving to be a significant hurdle.
Concern grows in that the market has failed to make the most of strong overnight handovers from the US session and have posted a series of negative candlesticks.
Add to that, this morning we see the initial support at 11,265 has been breached and the market is now tracking lower with a potential toward filling the gap now at 11,205.
Momentum indicators which had been improving impressively earlier in the week are now falling over, with the Stochastics and RSI especially needing to be watched.
Essentially the market has broken the resistance of the nine week downtrend but the bulls have not been able to build on the improvement.
- A “closing” of the gap at 11,205 would be a disappointment now.
- The resistance at 11,400/11,460 is growing too.
On the hourly chart there is a slipping of the positive momentum which is now turning more neutral again.
- There is further support at 11,093 and 11,009 is key.
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