DAX Xetra (cash index)
As the market has broken higher in the past few sessions the bulls look to be gaining control once more.
However there is still work that needs to be done to suggest the market is bullish again.
The late February rally high at 12,601 needs to be breached which would breach the key lower high in the selling phase.
A six week downtrend was broken last week and momentum indicators are picking up but they are still needing to push into more bullish configuration otherwise the risk is that this could still just be a bear rally.
- With the recovery over the past week there is now a new uptrend formation seen on both the daily and hourly chart, whilst the hourly chart also shows the pivot at 12,284 now becoming a good basis of support.
- The opening gap higher today has filled Friday’s intraday high as the initial rally has been tempered this morning but the trend support comes in around 12,325 and corrections are now being bought into.
- Initial resistance is today’s early high at 12,455 and the bulls will be eying the resistance overhead between 12,500/12,600 (broadly the 38.2% Fib of the sell-off and the February high.