DAX Xetra (cash index)
A pullback following the strong bullish breakout of Wednesday dragged the DAX back towards the new support which the bulls will see as another chance to buy.
The daily chart shows the move was merely an “inside day” within the strength of Wednesday’s bull run but with the breakout now becoming supportive between 12,600/12,650 there is a new underlying demand on the DAX.
Momentum indicators are strongly configured to suggest that corrections are now a chance to buy.
The early morning rebound again today will also add to confidence that this is now the strategy going forward.
Non-farm Payrolls later this afternoon will drive intraday volatility but the key breakout of recent days suggests the one month uptrend channel will continue to pull the market higher.
If this continues in the wake of payrolls then the bulls will sit with added confidence.
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