DAX Xetra (cash index)
As trading ramps up for Tuesday’s session, the bulls are beginning to warm to the task of breaking the recent trend lower.
The market rolled over at 13,204 a couple of weeks ago and has been posting lower highs and lower lows ever since, however there are signs on momentum indicators that this could be about to turn around.
This morning’s early move to the upside is now testing the two week downtrend which would see confirmation of a breach on a move above yesterday’s high at 12,846.
It is interesting to see the momentum indicators turning higher, with the crossover buy signal on the Stochastics the first to find traction to the upside once more.
The key is to whether this is a lead indicator amongst eh momentum signals, with the RSI ticking back higher around 50 and the MACD lines seemingly bottoming.
The hourly chart reflects an improvement in momentum is building and if the hourly RSI can hold sustainably above 60 and hourly MACD lines hold sustainably above neutral then the outlook will continue to improve.
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