DAX Xetra (cash index)
The DAX continues to pull higher with cautious optimism as Friday’s positive session included a close at the highest level since 16th October.
Today’s early move higher is looking to confirm the latest breakout, however, the source of much of the caution now could be the overhead supply of the old long term resistance band 11,725/11,865.
Global equities are broadly breaking higher, but how the DAX responds to this key resistance band will be crucial for the medium term outlook.
Momentum indicators are positively configured with the RSI in the high 60s and Stochastics swinging higher.
The hourly chart shows positive configuration on momentum over the past week, with the hourly RSI consistently above 50 and MACD lines above neutral.
Intraday weakness is a chance to buy, with an uptrend of the past month flanking the lows.
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