DAX Xetra (cash index)
The bulls remain on the brink of a decisive technical improvement, but still just cannot make the break.
Friday’s daily candlestick reflected a struggle of a session and the market seems to be restricted once more this morning.
Resistance at 12,460 was broken by Friday’s intraday gains, even if the market could not sustain the move into the close.
Early gains are once more testing higher and a decisive closing breakout above 12,460 would put the market directly in the line of testing the crucial February high at 12,600.
With the Average True Range at 185 ticks (although this is now falling) there is the potential for an imminent test of 12,600 should the bulls take control.
For now though this is an improving market that is straining to move higher, but the hand brake is still on.
Despite this, the medium term improvement on the momentum indicators is continuing and suggests that weakness remains a chance to buy.
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