DAX Xetra (cash index)
There is a trend higher that has developed over the past seven sessions, but the bulls need to grasp the impetus once more today to prevent the rally from losing momentum.
Although there was a positive session yesterday, including a filled upside gap, a close below the open leaves question marks over the strength of the buying.
Today’s move has found support around the seven day uptrend but now needs to use this support to push higher once more to test the key resistance band 12,500/12,600.
This comes as the RSI is now back to 50 and the Stochastics threaten to roll over.
Reaction to US CPI this afternoon could therefore be key to the near term outlook.
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