DAX Xetra (cash index)
Yesterday’s intraday burst higher took the DAX through the medium term pivot at 12,600 and means the outlook has shifted more positively for the continued recovery.
Having bounced to leave a low at 12,470 this week, the market is building within a four week uptrend channel to suggest that near term corrections are now a chance to buy.
The channel support comes in at 12,530 today whilst the medium term pivot at 12,600 becomes a gauge of support and a buying opportunity as the market has just slipped back a touch in early moves today.
Momentum indicators are moving along with the improvement in the index, with the RSI holding marginally above 50, the MACD lines set to tick above neutral and the Stochastics edging to bottom out above 50.
The hourly chart shows the market rolling over slightly today, but pulling back into a clutch of rising moving averages and there is a support band 12,565/12,600 as a near term buy zone today.
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