DAX Xetra (cash index)
Having broken out above the old February high of 11,371 last week, this old resistance becomes new support for corrections.
An early slip back today is unwinding some of the gains of the past week but should be the source of the next chance to buy.
However, for now, this move needs to be treated with a degree of caution.
The market has opened lower today and has already “filled” a gap at 11,480 but this could signal a minor corrective move if the bulls fail to “close” the gap.
Daily momentum remains strongly configured with weakness still seen as a chance to buy.
The hourly chart reflects this too as the hourly RSI just unwinds back towards 50 and MACD lines just begin to drifter lower from a strong configuration.
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