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DAX analysis 08/09/2017


DAX futures (Sept 2017 contract is FDXU7 and expires on 15th Sept, continuation contract is FDXc1)

 

The outlook continues to improve despite the early drop back this morning.

Another push higher yesterday resulted in a breach of the intraday resistance at 12,340 and also a close above 12,300 which was a seven week closing high.

The momentum indicators continue to improve in their configuration with the RSI above 50 at an 11 week high and the Stochastics at a four month high whilst the MACD lines accelerate higher.

Although the market just failed to decisively complete the breakout and base pattern, this all points to corrections being seen as a chance to buy now.

This is reflected in the reaction today where the DAX continues to outperform other European indices and the early weakness in today’s session has been bought into.

  • The hourly chart shows a band of support 12,200/12,250 is a band of near term support now.
  • Expect pressure on the old band 12,300/12,340 to continue with the bulls now far more in the driving seat.
  • A successful breakout completes a base of 360/400 ticks with 12,487 and 12,567 the next resistance.

 


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