DAX Xetra (cash index)
The DAX has pulled back in the past couple of sessions as the momentum in the recovery has ebbed away.
However all is not yet lost for the bulls.
They may have slipped but the uptrend channel formation of the past few weeks remains intact and the bulls will be eying a continued closing level above the 23.6% Fibonacci retracement at 12,379.
The key higher reaction low on an intraday basis is also intact (last week’s low at 12,284).
However, the bulls also need to return quickly as the momentum in the recovery is waning as the RSI is tailing off under 50 and the Stochastics are also losing their impetus.
The hourly chart shows a positive configuration remains in the recovery with the hourly RSI holding up above 40 and MACD lines above neutral.
Corrective moves continue to be a chance to sell whilst these trends are intact.
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