DAX Xetra (cash index)
Traders on the DAX face uncertain times as the market has again gone into reverse again this morning with early selling.
It had looked as though the outlook had taken a turn for the positive as the bullish engulfing candle from Monday was followed by a sharp open higher yesterday.
However an intraday decline into the close saw the opening gap at 12,110 closed, with the market ending the session all but at the low of the day.
Today’s opening gap lower again now increases the downside pressure again and a negative close below 12,090 (Monday’s bullish close) would be a negative development.
However, on a near to medium term basis, as long as the support of Monday’s low at 11,830 remains intact then the potential for a recovery will still be on as the bullish engulfing candle would be a dominant chart feature.
Despite this though, the momentum indicators are struggling again with the RSI now failing under 40 and the MACD lines still tracking lower.
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