DAX Xetra (cash index)
Consolidations within the recovery have tended to be seen as a chance to buy for the next bull leg higher and there is little to suggest this is not once more going to be the case.
Recovery remains on course to test the old key long term breakdown which is significant overhead supply between 11,725/11,865.
However, the DAX has stalled slightly since breaking decisively higher through the 11,567 resistance on Friday, posting a high at 11,677 as the market has drifted back towards the breakout again.
This is a situation that has been seen on numerous occasions throughout the recovery and should be the source of the next buying opportunity.
This comes with momentum indicators still strongly configured, with the RSI in the high 60s, MACD lines rising and Stochastics still positive.
The hourly chart remains positively configured with RSI continually bottoming between 40/50 and MACD lines positive above neutral.
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