DAX Xetra (cash index)
With equities on Wall Street soaring on the election results, the DAX has been dragged higher, but is the market ready to make a decisive upside break?
A recent uptrend was broken as the market corrected back into the 11,445/11,500 support band, however building from this as a basis of support was a positive move yesterday.
A positive session came with a mildly bullish candle (a close over 50 ticks from the high is a touch concerning).
This means that today’s reaction needs to confirm a positive move for the momentum and impetus in the move higher to be sustained.
Right now there is a 60 tick move higher initially, but the resistance of last week’s high at 11,690 needs to be broken to drive a trend of higher lows and higher highs.
- If this breakout can be seen on a closing basis then the bulls will be positioned well for a serious test of the overhead supply between 11,726/11,865 which is the key medium term resistance.
Momentum indicators are progressing positively now with the RSI edging above 50, whilst MACD and Stochastics accelerate higher.
- The importance of this week’s reaction low at 11,435 is growing by the day.
The hourly chart shows momentum is still positively configured as the hourly RSI remains above 40 and MACD lines above neutral.
- Initial support at 11,532.