DAX Xetra (cash index)
Another positive open on the DAX will have the bulls believing that a breakout above the March high could be imminent, however, this is a rally that continues to pose questions.
The downtrend channel was broken by yesterday’s opening move higher but the market slipped back into the close to leave a bearish one day candle (even though there were gains on the day).
A further open higher today could be threatening a similar move, with the resistance at 12,460 still intact.
Despite this though there is an improvement that continues to show through on the momentum indicators
It will be interesting to see how the market reacts to the opening gap higher today.
This is the big risk for further gains in the coming days.
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