DAX Xetra (cash index)
After several days of consolidation, yesterday’s decisive upside break has re-opened the market for continued gains.
The mini range of 115 ticks implies an initial target of 13,150 with the next resistance of the old January lows around 13,140 already being tested today.
There is continued strength in the momentum indicators to suggest that corrections remain a chance to buy within the six week uptrend channel.
There is now breakout support at 13,034 today as the market has slipped back a touch in early moves, however this will likely be seen as an opportunity for the bulls.
Hourly momentum configuration remains strong although the hourly RSI is slightly stretched over 70 and this could induce an initial technical correction today.
However the buyers certainly do not seem to be done yet and any weakness within the trend channel will be pounced upon.
- Look for support to form around 13,034 and the buyers will be in control above 12,918 whilst the trend support also comes in around 12,920 today.
- The next upside resistance above 13,140 is at 13,300.