DAX Xetra (cash index)
A DAX recovery has been given a boost as the bulls were finally above to break the shackles with a breakout above the key pivot around 11,000 (support and resistance has ranged between 10,990/11,010 in recent months).
This has seen the recovery of 2019 move into a different phase after over a week of consolidating under the resistance.
A trend channel formation is now forming over the past few weeks which is now rising as a basis of support at 10,900 today.
Momentum indicators are increasingly positive with the RSI above 60 (having failed around here for months), whilst Stochastics are strongly configured and the MACD lines accelerating higher.
Corrections are a chance to buy.
The hourly chart shows the RSI is stretched and this could induce a near term unwinding move.
Today’s early slip back could help to renew upside potential.
At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.