DAX Xetra (cash index)
Considering the looming geopolitical (US/China tariffs dispute) and Non-farm Payrolls tomorrow, the opening gains on the DAX this morning signal a remarkable resilience of the bulls, but can a breakout be sustained?
For over a week now the market has been building within a trading range 11,997/12,440 but this morning a drive to buy has pulled the market above 12,440.
The medium term outlook continues to suggest that near term rallies under the key pivot at 12,600 remain a chance to sell.
This outlook is being tested early today.
Momentum indicators are ticking higher and the Stochastics crossing back above 20 would be a key move.
There is little technically to suggest that this can be a sustainable rally yet, but pulling above 12,600 would pose serious questions again.
Technically, the hourly momentum indicators show an improving outlook now is growing, but much more needs to be done to suggest this move is sustainable as the RSI is yet to pull above 70 and MACD lines are only marginally positive.
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