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Consolidation on the DAX but the bulls still control

Posted by on May, 11 2018.

DAX Xetra (cash index)

The bulls continue to push forward as another positive session completed yesterday with a close above the psychological 13,000 barrier.

A near term breakout above 12,960 leaves support at a higher level and the market continues to run higher with a sharper two week uptrend within the five week uptrend channel.

  • The bulls will certainly be eyeing a test of the 13,140 next resistance.

Momentum indicators remain positively configured and continue to suggest that near term corrections remain a chance to buy.

The steepness of this two week uptrend means that any consolidation will now potentially break the uptrend and this is what could be about to be see today as the early slip back comes in today’s session.

  • However having broken out above the key 12,600 support the market will look towards building support within the trend channel.
  • The latest breakouts at 12,827 and 12,960 are now supportive.
  • On the hourly chart there is a continuation of the strong momentum as the hourly RSI continues to find buyers returning around 50 and MACD lines are positively configured.
  • The initial resistance at 12,033 needs to be breached having been tested twice in the past two sessions.

The hourly chart does also show that the market has not broken a higher low since 25th April.

 

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