DAX Xetra (cash index)
A rebound added 74 ticks yesterday is forming a positive candle, but in the context of recent selling pressure, this has been a relatively small reaction higher whilst today’s consolidation questions the longevity of the recovery.
Momentum indicators on the daily chart remain solidly correctively configured, with the RSI struggling under 40, MACD lines tracking lower and Stochastics bearishly positioned. This all suggests that the rally will struggle and to expect renewed selling pressure to take hold once more in due course.
However the hourly chart suggests the rallies struggle in the 45/55 region on the RSI whilst the MACD lines continue to reflect a negative configuration.
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