DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
A breakout on the DAX never really felt bedded in or confirmed by the bulls and a sharp bear candle has ushered in a corrective move.
The market has now sharply reversed the breakout with a near term drop back which has breached the support band 13,400/13,525 and early losses today continue the move.
This still has the feeling of a near term retracement move but the ECB today will add extra spice to trading in the session.
The fact that the market is trading still above all the rising moving averages and momentum indicators are unwinding a bullish configuration suggests that corrections will be supported but the question is how far the retracement goes.
Un uptrend is also forming on the daily chart with today’s low at 13,344.
Support of the mid-January low is solid between 13,125/13,165 whilst initially today’s low has come around an old breakout at 13,350.
How the bulls can negotiate the resistance that is now building between 13,400/13,445 will be key as to how the market responds to this correction.
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