Is The DAX Rebound Beginning To Struggle At Resistance?
Hantec Markets | Dec 13, 2018 10:36
DAX Xetra (cash index)
A recovery in the past few sessions has unwound some of the recent oversold position, but is the move anything more than just another chance to sell?
The risk appetite around global equities has been less negative as the US/China rhetoric has improved, allowing the market to rebound but the big test for the DAX is overhead with the resistance around 11,000.
- The key breakdown of old support has turned new resistance at 11,009 along with the underside of the old long term uptrend around 11,100.
Momentum indicators are in the process of unwinding on a near term basis, but will this just renew downside potential?
- Today’s initial slip back from a high of 10,988 is a concern and is now testing the recovery uptrend on the hourly chart.
- A move below the higher reaction low at 10,861 from yesterday’s session would constitute the recovery failing.
Watch the hourly indicators, with the RSI potentially rolling over around 60 and MACD lines losing impetus around neutral.
A confirmed sell signal is threatening on the hourly Stochastics too.
- Below 10,861 opens 10,780 with the key low at 10,585.
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