DAX Xetra (cash index)
DAX traders have returned from a day off and come in with a spring in their step again to drive a key upside break.
Monday’s positive session meant that the DAX had closed above 12,600 for the first time since 5th February and early gains today seem to be now finding traction for the upside.
Recent weakness in the euro is certainly a factor that is helping to drive the market higher, but this reaction today will increase the confidence the bulls now have.
This is a move that is a long time coming and trading above the resistance band 12,600/12,647 seems to be a decisive break.
The fact that it is coming with the RSI confirming the near three month high, whilst MACD and Stochastics lines are also pulling positively higher reflects the market breaking the shackles.
The next step would be for a solid bull candle to be formed today, including a closing level above 12,647.
This would give the bulls confidence that there is conviction in the breakout.
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