DAX Xetra (cash index)
After a period of consolidation, equity markets have taken the lead once more and the DAX has broken sharply above the key pivot resistance.
Yesterday’s strong bull candle decisively broke above 12,600 which had been a basis of resistance and this now re-opens the upside.
There is now an uptrend channel formation of the last two weeks that is pulling the market higher which is around 320 ticks in depth.
With yesterday’s strong move and a gap higher at the open today, momentum indicators are turning positively configured again.
The RSI confirms the breakout and is rising above 50 at near five week highs, whilst Stochastics are strong and it now just needs the MACD lines rising above neutral (which is close) to complete the set.
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