DAX Xetra (cash index)
A breakout on the DAX above 11,865 is a real sign of intent from the bulls.
It completes a big base pattern and opens for continued recovery I the coming months and opens the next resistance at 12,458.
However, this is a run that is at increasing risk of consolidation or even near term correction now.
The RSI is bumping up against 70, an area where the February and March rallies hit the skids and given today’s mild slip back, there is a risk that some near term profit-taking could set in.
The hourly chart shows the strength of the run higher, whilst also how stretched the near term picture has become.
Broadly the outlook for the DAX is now far stronger than it has been for several months and weakness into support should be seen as a chance to buy.
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