Dow recovery slows and DAX continues to consolidate
The Dow continues to recoup lost ground, while the DAX remains in a period of consolidation after strong gains.
Dow
Monday’s recovery continues to solidify the Dow Jones index’s rebound from the March lows. It has moved back above the 42,000 level which marked the low in December and early January. The late December high at 43,315 now comes into view, following up by the early March high of 44,000. Sellers will be watching for a move back below 42,000 to raise hopes that a lower high has been formed.
DAX
The DAX 40's upward momentum continues to slow in this market, as indicated by the steadily declining stochastic indicator. Current price action looks more like sideways consolidation following the healthy gains of January and February, supporting a bullish view in the medium term.
A push back to 23,500 and then a close above this level resolves the consolidation in favour of the underlying uptrend. Seller will need to see a drop below the 21 February low at 22,100 to suggest that a more substantial pullback is underway.
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