DAX futures (March contract is FDXH7, continuation contract is FDXc1)
Despite a marginal move lower yesterday the market remains positive.
A very tight session of just over 50 ticks with a very small candle body reflects uncertainty, however a strong open today with a gap to a new two week high is positive.
The momentum continues to improve with the RSI above 60 and Stochastics rising strongly, but now also the MACD lines are looking set to cross higher.
Bollinger Bands are expanding which suggests a capacity to test the 11,895 high is now in place.
Corrections are now a chance to buy, with the hourly chart forming an uptrend.
Support is now in place at 11,750 initially and then a band 11,700/11,725.
Also hourly RSI is finding support above 50 and hourly MACD lines are just turning up again.
A gap higher is still open at 11,771 which ideally needs to be filled but the buyers are confident now and any weakness is likely to be quickly snapped up.
- Resistance is minor at 11,850 before the 11,895 high.