DAX Xetra (cash index)
The gains are still being squeezed out of this recovery for the DAX, but the big tests for the bulls are now ready to be seen.
Holding the recovery above the previous breakout high at 11,371 maintains the strength of the run to 12 week highs, however, can the move be sustained.
This comes with the confluence of an 8 month downtrend (comes in at 11,525 today) and the resistance of the December high of 11,567.
Furthermore, it was interesting to see the early February peak (of 11,371) coming with the RSI at 65, a level it is also now at.
Momentum is strong but given the barriers overhead, the immediate upside might struggle.
Weakness is a chance to buy and for now there is little decisive signal on the hourly chart that suggests the bulls are losing too much.
The hourly RSI falling below 50 would be a signal, whilst the hourly MACD lines below neutral would also suggest a retreat back into the support of the breakout at 11,371 could be seen.
The bulls still have this rebound, but an unwind to the breakout could give another chance for renewed upside potential in the recovery.
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