DAX Xetra (cash index)
The mixed signals on the DAX continue to build even though the market has opened higher once again this morning.
However, for the past few sessions, intraday rallies have been sold into and this is adding to the lack of conviction that the bulls now face.
The momentum indicators reflects an uncertain outlook; with the medium term configuration of the RSI and MACD lines continuing to suggest that near term rallies remain a chance to sell, there needs to be considerable caution taken with the early gains on the market today.
The RSI and MACD lines remain below their neutral points, whilst the Stochastics are again tracking lower.
Despite this, the market has left support at Tuesday’s reaction low at 12,162 and the longer this remains intact the more important it will become.
The hourly chart shows the market is still paying regard to the pivot around 12,284 as a basis of resistance and interestingly where the market is currently trading.
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