DAX Xetra (cash index)
Once more the bulls have been unable to grasp control as another intraday rally has failed to be confirmed.
The market is now in an intriguing phase of trading within this consolidation.
Is this a case of the bulls gradually feeling their way back to the driving seat, or could it turn into a rising wedge (a bearish technical pattern).
In the past week the market bottomed at 12,493 and has been busy building a run of higher lows to claw back above the old pivot at 12,600.
Holding above this pivot is key on a near term basis now.
Yesterday, we discussed how the underside of the old uptrend channel was a basis of resistance and the market has been bumping up against this in recent session, but repeatedly unable to break higher.
The hourly chart shows how the recovery in the past week has still got more to do to turn momentum back positive again, but if the little trend (which comes in around 12,570 this morning) is broken this would be a concern now.
So, for now this is a consolidation pattern that we are no closer to knowing the breakout from.
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