DAX Xetra (cash index)
There has been a mild improvement in risk appetite in the past 24 hours that has allowed the DAX to form a recovery of sorts, but how long it lasts for is another issue.
The medium to longer term outlook remains deeply negative and there is an implied target of 10,150 for the coming months.
Right now though there has been a rebound against the wave of selling that has taken the market above 10,800 but big overhead supply above 11,000 looms large.
- A recovery is helping to pull near term momentum improvement with the RSI ticking higher and Stochastics also crossing up, however, how sustainable recovery would need to break decisively above resistance between 11,000/11,200.
This should provide another chance to sell, but timing this move will be key.
For now the momentum is with a rebound.
The hourly chart shows the RSI and MACD lines unwinding to levels where the sellers would be eying an opportunity.
- Initial resistance is 10,885/10,925.
- Support initially at 10,780.
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