DAX Xetra (cash index)
The prospects of a sustained recovery in the DAX have taken another hit this morning as the market has traded sharply lower again in early moves.
This is now unwinding much of the gains seen in the past three sessions as the market had looked to pick up again.
Friday’s rally failed to break through the March high of 12,460 as the rebound turned lower from 12,455 to strengthen the resistance overhead.
This comes as momentum indicators question the longevity of the rally, as the RSI has again turned lower below 50 and the MACD lines struggle below neutral.
On a near term basis, leaving the intraday noise aside there is a mini-range of around 300 ticks between 12,162/12,460 and a close outside of this now eight day range is set to drive direction, deriving 300 ticks of further move.
The hourly chart shows hourly RSI oscillating between 30/70 and MACD lines fluctuating around neutral, so any move outside this would be an early signal.
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