DAX Xetra (cash index)
After a period of consolidation and searching for direction, the outlook has been significantly improved from one strong positive candle that has decisively taken the market above resistance at 12,600.
This move has broken a corrective four week downtrend, closing above a batch of overhead supply and is on the brink now of a key breakout.
The old medium term pivot at 12,600 is still seen as a gauge for the market and if the bulls can pull a second successive bull candle with a close above 12,600 this would be a decisive signal.
Momentum indicators are pulling higher, with the MACD lines posting a bull cross, and Stochastics accelerating higher.
If the RSI can pull above 60 it would be a confirmation that the bulls are in control again for the medium term.
An early look at 12,600 has been rebuffed, but the hourly chart shows positive momentum is building for the bulls now.
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