Technical Update - DAX breaking key resistance. Further upside in the cards
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
DAX closed above key resistance at 13,948 during the rally yesterday. If DAX closes the week above 13,948 i.e., today, it has confirmed medium-term uptrend. Keep an eye on the weekly RSI; will it close above or below 60 threshold? That could be the key for next few weeks. A close above there is more upside for DAX but if RSI closes below 60 i.e., is rejected expect set back on DAX.
Daily RSI is at higher levels with no divergence indicating higher levels on DAX. However, the uptrend is a bit stretched and a correction should be expected, possibly testing the previous resistance now support at around 13,948.
DAX is having strong resistance at around 14,600 -14,925.
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