DAX Xetra (cash index)
As has so often been the case in recent weeks, the bulls have struggled to decisively build following an upside breakout, as a period of consolidation has again followed.
However, is this another chance to buy?
Since breaking above the former resistance at 12,780, the market has consolidated back from 12,887 towards the breakout.
A couple of corrective candles has seen the market slip back but this is all playing out within the four week uptrend channel, as it has done on several occasions in the past few weeks and each time previously, the corrective moves have been bought.
Yesterday’s intraday bounce from 12,740 pulled the market back above the 12,780 breakout again into the close, but this level is again being tested today and the slip back within the channel may still have more weakness to go yet.
Momentum indicators are just sliding back within a strong medium term configuration, but it is worth watching the Stochastics which have just crossed lower.
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