DAX Xetra (cash index)
The bullishness of breakout of the DAX has just been curbed this morning, but is it just another chance to buy?
Support of the trend channel held very well last week and the market used the pivot at 11,000 as a springboard for the breakout above initial resistance at 11,217 to continue the January recovery.
Momentum indicators are strongly configured, with the RSI above 60, MACD lines rising above neutral and Stochastics positively positioned, so corrections are now a chance to buy.
The hourly chart shows any unwinding move back towards 40 on the hourly RSI has been supported throughout this month, whilst neutral is supportive on the MACD lines.
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