DAX Xetra (cash index)
The slip in the past couple of sessions now threatens to drag the DAX back to the first key support, just how traders react to the breakout around 12,460 will be key for the near to medium term outlook.
With the market never confirming the breakout above 12,600 (intraday peak at 12,640) and the market has just been drifting lower in a move that has now broken the recovery uptrend of the last two weeks.
The first key test though comes with 12,460 as a confirmed breach would begin to suggest a correction is resuming once more.
Currently the momentum indicators are not reflecting this drift lower and are holding up well on the daily chart so there is not a lead from the technical signals being seen.
For now this is a contained correction and a move that finds support around (or preferably above) 12,460 would be seen as another chance to buy on the DAX.
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