Is the DAX ready to build sustainable support again? 14/11/2017 #Hightrade
The sell-off continued during yesterday’s session but there are increasing signs of support having now been formed.
Is the correction now over?
The initial answer is that there needs to be more evidence of sustainable support before being confident of moving back into long positions.
Yesterday’s bearish candle closed well above the low of 12,958 into the top half of the session.
- This move has also bounced back above the previous support band 12,900/13,090 which is taking on added importance on a medium term basis now.
- Today’s gains are early in the session but a move to close back above 13,090 would be a positive sign.
Momentum indicators on the daily chart are just beginning to now slow their correction which is interesting as the RSI is ticking higher just under 50.
The caveat is that support looked to be forming early in yesterday’s session only for a strong sell-off subsequently coming though.
However there are signs of improvement on the hourly chart.
If the hourly RSI can push and hold above 50 and the Stochastics bolster above 80 with the hourly MACD lines above neutral then the outlook will begin to look far more positively configured.
- Resistance comes in at yesterday’s high of 13,160 which is then added to in the range 13,190/13,250.
- Today’s traded low at 13,074 is initial support above 12,958.