DAX Xetra (cash index)
A renewed sense of optimism is gaining more conviction as a day of consolidating an initial breakout yesterday has been followed by another move higher at the open today.
The recovery back above the 11,000 medium term pivot has been a key move and the bulls seem set to build upon their improved position.
Momentum indicators are reflecting this as they tick higher again with the Stochastics cross higher, the RSI rises above 50 and MACD lines settle above neutral again.
For the bulls, there is a basis of support near term with yesterday’s tight trading range 11,116/11,164 and this will be seen as a gauge for the progression of the recovery now.
There is a technical improvement on the DAX of late, but looking across the course of the past few weeks there is a sense of caution that needs to be taken with this rally.
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