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A choppy DAX drops back again but support is holding


DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)

 

Euro strength and a slip on Wall Street tends to be a bad combination for the DAX.

Subsequently the improving outlook was completely turned on its head yesterday as a huge bearish reversal candlestick formed.

The selling pressure has continued early this morning but the market is already well off the lows (helped higher by the strong German manufacturing PMI).

This continues what is a very choppy week for the DAX with the near term moves difficult to call with any real conviction.

A step back would now say that the market is ranging again and support between 12,843/12,900 is holding whilst the the hourly RSI is increasingly oscillating between the RSI extremes.

Subsequently the reaction to the latest hourly candle which is a recovery move will be interesting.

  • Initial resistance comes in around 13,000 and a close back above would be seen as a reasonably positive response today.

Thanksgiving without US traders means that moves as the day wears on could be a little less volatile.

  • Initial support is the day low at 12,900 which now adds to protection above 12,843 and a support band on a medium term basis.

 


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