DAX Xetra (cash index)
Although there is still a basis of support around the 11,400/11,445 pivot lines, the bulls just cannot seem to generate the upside momentum needed to now drive a sustained recovery.
Once more, this morning the market looked positive at the open but this move has been sold into.
Friday’s positive candle could not sustain the impetus and momentum indicators are beginning to tail off again which is a concern for the longevity of the support.
In the past seven sessions of arguable consolidation, there has been a tendency for negative candlesticks to be more prevalent and with a run of mini lower highs, pressure is mounting on the lows of the consolidation.
The concern will grow should there be a close below 11,400.
Momentum indicators are beginning to roll over with the RSI tailing off under 50, and the Stochastics threatening to cross lower.
The hourly chart reflects a deterioration in momentum with hourly indicators (MACD and Stochastics especially) on the brink of near term sell signals.
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