DAX Xetra (cash index)
Seemingly one bearish candle and suddenly the whole positive outlook for the DAX is coming under pressure.
Can the bulls hang on to the trend channel?
Despite yesterday’s move above resistance at 13,140 the market has opened lower today and the move seems to be sharply down to test the support of a seven week uptrend channel.
Channel support comes in at 12,970 and has been tested early today.
The market has now retreated into the belly of the support band 12,918/13,034 which is key for the medium term recovery.
Concern in this corrective slip today comes with the fact that momentum indicators are ticking lower, with the RSI breaking its confirmation uptrend of the past eight weeks.
If this move lower turns into a second day now there is also likely to be a bear cross formation on the MACD lines to consider too.
However the hourly indicators are slipping back and how the deterioration in the MACD and RSI develops today would be a key factor.
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