DAX Xetra (cash index)
Yesterday’s recovery positive candle was an admirable attempt by the bulls, but the move is still likely to simply be seen as another chance to sell.
Theoretically, closing the gap at 11,230 is a positive development, however if this is now backed up with a negative candle today there will be significant reservations over the longevity of a rebound.
The hourly chart suggests that the band around 11,230 is an area of near term overhead supply and it is interesting to see the market falling back around this resistance today.
Although Thanksgiving in the US gives the moves in today’s session less clarity, there is still a corrective configuration to momentum and the early slip back today could reflect a bull failure.
Could this be shifted though with a prospective bull cross on the Stochastics edging through?
It is far too early to go on just one potentially positive momentum signal and hence the failure of the rebound this morning is more of a concern.
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