DAX Xetra (cash index)
The recovery is already threatening to roll over as a failure to breakout above 12,600 again has pulled the profit-takers back in once more.
Is this an opportunity for renewed selling pressure?
The support at 12,500 has been breached early today whilst the recovery uptrend has also been broken on an intraday basis.
What will now be key is today’s close. A second decisive bear candle in the past three sessions is now in the offing.
A close below 12,500 would also close below the uptrend (which is in at 12,500 today), a move that would seriously test the strength of the bull control.
The momentum indicators are starting to wane once more in their recovery and this is certainly a key moment in how the recovery goes now.
Below 12,450 would also be back below all the moving averages (which are in decline) too.
The hourly chart shows that the upside momentum has lost impetus but is not yet negatively configured on momentum.
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