DAX Xetra (cash index)
An acceleration of the selling pressure has brought the DAX all the way back towards the key February low again with 12,003 once more in the firing line.
The concern is that if the market does indeed breach 12,003 could it be that the recent recovery move has simply been a rising wedge consolidation within the sell-off?
An exceptionally important support comes in with the old August 2017 low at 11,869 and if this were to be broken then it would actually complete a huge long term top pattern.
Momentum indicators are turning strongly negative again with renewed downside potential as the RSI drops towards 30 (the February low at 25) whilst the MACD and Stochastics are also strongly deteriorating again.
The hourly chart shows that there is a gap open at 12,143 which is now a basis of resistance today, whilst the early traded high at 12,081 adds further resistance.
Hourly momentum indicators are sharply negative and show that intraday rallies are a chance to sell as the pressure ramps up on the key supports.
The hourly chart also shows that 12,284 is now forming as a near term pivot and is resistance.
A downside break below 12,003 opens an implied downside projection of 600 ticks towards 11,400.
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