DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)
As DAX trading resumes after yesterday’s public holiday, futures have broken out to new all-time highs this morning.
A move above the June high of 12,935 has hit an initial high of 12,967 before an initial unwind.
The question is whether the bulls can sustain the move now.
The momentum indicators on the daily chart remain very strong with the RSI now up into the 80s, MACD lines pushing higher and Stochastics positive.
For now this remains a trending move, but the prospect of profit-taking is growing.
The support on the hourly chart at 12,838 will be watched as an increasingly important near term support as the market has run so strongly higher over the past week and there may be some concern that profit taking may begin to set in.
A move below 60 on the hourly RSI could begin to suggest the bulls losing impetus.
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