The Dax is consolidating under new record high (14864) on Monday, after strong advance in past two days.
Last Thursday’s bullish candle with long tail signaled downside rejection and an end of shallow pullback, while further acceleration on Friday confirmed strong bids.
The export-heavy index was boosted by continuous improvement in German industrial sector as well as upbeat data from China, which signal a rebound in country’s manufacturing sector.
On the other side, overextended daily studies and south-heading momentum continue to warn of consolidative / corrective action in the near-future.
Recent mild correction and short-lived probe below initial support – rising 10 DMA – suggest that bulls remain firmly in play for attack at psychological 15000 barrier
Initial support at 14678 (10DMA) should ideally contain, with extended dips to find ground above rising 20DMA (14488) and keep bulls intact.
Only firm break here would sideline bulls for deeper correction.
Res: 14864, 14904, 14961, 15000.
Sup: 14731, 14678, 14525, 14488.