DAX Xetra (cash index)
A completed turnaround of sentiment as yesterday’s session progressed has put the bulls back in the driving seat and suddenly the market is breaking higher again.
For over a week the market has been drifting back from the prospect of a crucial closing breakout above 12,600 as the bulls have consolidated.
However it was key that breakout support at 12,460 held firm yesterday and the market subsequently completed a bull hammer.
Although this came at the bottom of only a short corrective move, it is still significant in the reflection of where the bulls see corrective moves.
With early gains pushing the market above the key February high at 12,600 once more today, a closing breakout would be a key sign that the bulls are ready to push forward.
The strength of the momentum on the daily chart is key with the RSI above 60, MACD lines rising and Stochastics strong.
The hourly chart shows the momentum indicators of the bulls using weakness continually as a chance to buy with positive configuration on the hourly RSI and MACD lines.
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