DAX Xetra (cash index)
For the past few sessions the DAX has been looking at the March and February highs for a breakout, but so far the bulls have been rebuffed.
Can the bulls drive a breakout?
The concern is that the longer the market struggles, the more likely that the bulls will tire and run the risk of taking profits on the April rally.
This concern is beginning to show on the Stochastics which have just started to top out.
This could be a one-off of the momentum indicators, with the RSI steady in the mid-50s and MACD lines rising, but the Stochastics are a sensitive momentum indicator and could be a signal of waning momentum.
It is interesting to see that in this recovery the bulls are also still yet to post a close above the March high of 12,360, changing this today would be an improvement and help the confidence of the bulls.
The hourly chart shows momentum configuration still positive with the hourly RSI rebounding again above 40, hourly MACD lines above neutral whilst the hourly Stochastics have just crossed back higher this morning.
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