DAX Xetra (cash index)
As the recovery has accelerated higher in recent sessions the DAX is finding a little resistance this morning which has threatened a corrective move.
After such a strong run of gains and positive candlesticks, it will be interesting to see how the bulls respond to this early slip.
Will it be a concern that this is coming as the RSI has hit 60, an area where the rallies of July and August began to lose momentum?
The market remains under the three month downtrend (which comes in around 12,500 today), but equally there is the support of a two week uptrend coming in at 12,230 today, so in terms of trend, there is some room for an unwind within the near term trend without too much disruption.
However, on the hourly chart there is a MACD cross sell signal and some unwinding momentum building which would put pressure on initial support between 12,300/12,350 support.
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