DAX Xetra (cash index)
The DAX remains at a near to medium term crossroads as the market hangs on to the old pivot around 12,600 but the bulls are unable to break free.
In each of the past few sessions the buyers have made intraday attempts at breaking above the near term pivot around 12,700 but failed on each occasion.
The near term outlook remains dependent on the run of higher lows in the past week as the hourly chart shows this mini uptrend is now supportive at 12,580 this morning.
The daily momentum indicators are just losing their way in recovery (as suggested by the recent daily candlesticks) whilst the hourly chart also points to a rolling over of sentiment.
The hourly RSI failing at 60 is a concern for the recovery, whilst the mini-uptrend rises towards 12,600 today and a decisive breach of yesterday’s low at 12,586 would suggest the bulls are under increasing pressure.
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