DAX Xetra (cash index)
The market has consolidated the breakout above 12,780 but will bulls continue to look upon weakness within the uptrend channel as a chance to buy?
For the past four weeks the trend channel has been pulling higher as the market has found higher lows and broken through resistance levels.
Channel support comes in to support at 12,630 today which is around 180 ticks away from the market price and given the propensity for the market to often retreat back towards the channel support, this is still a near term risk.
A negative candle yesterday and early consolidation today around the breakout suggests a market in neat term wait and see mode.
However any weakness is still an opportunity for the bulls.
The RSI is positively configured in the mid-50s, whilst the MACD lines are above neutral to reflect positive medium term outlook.
However, the Stochastics are threatening to roll over which would be near term corrective.
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