DAX Xetra (cash index)
The bulls responded well yesterday to put a positive session in and now they will be dreaming of a recovery.
This was the most positive candlestick on the DAX for two weeks, coming with a decisive positive body to the candle and 90 ticks higher on the day.
Now this move needs to be followed by further gains today and hopefully another positive candle.
The early move is one of consolidation but considering the huge selling pressure of the past couple of weeks, this is certainly a start.
The big tests lie overhead though, with the resistance of the overhead supply between 11,726/11,865.
How the market responds around here will be a real indication of whether the bulls have anything about them in this recovery and will simple be blown away again amidst a wave of renewed selling pressure.
The momentum indicators are looking to bottom, but so far have no sustainable recovery (buy) signals, so it is too early to go on anything on the daily chart.
However, on the hourly chart there is more of a positive signal, with bullish divergences on hourly RSI and hourly MACD lines.
Holding above these levels today, especially with a positive close/candle would be a good start for the bulls after a painful couple of weeks.
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