DAX Xetra (cash index)
Selling pressure has just begun to dissipate this morning, but is this just a pause in the correction or the beginning of a renewed leg higher?
The important technical factor to watch is the support band 11,370/11,415 which is the old key February breakout and subsequent pullback low.
Holding on to this range support will maintain the outlook that corrections within the two and a half month uptrend channel are a chance to buy.
Although there is still a negative near term configuration as the momentum indicators have rolled over, it is interesting to see RSI holding in the mid-50s and MACD lines rather benign, something which adds weight to the conviction that this is likely to be an opportunity for the bulls.
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