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DAX breaks higher once again


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

 

After consolidating for the past few days the DAX has opened strongly again this morning.

The market had been moving sideways as the September contract was running to expiry however with the new week and improved risk appetite, the market has pulled above the resistance at 12,556 to re-open the 12,655 key July high again.

It is also interesting to see that the medium term pivot around 12,500 was also a basis of support on Friday and could now become a gauge to watch as corrections are being bought into.

Momentum indicators remain positively configured with the RSI holding in the high 60s, the MACD lines rising strongly and the Stochastics also bullishly configured.

The hourly chart shows a band of support 12,463/12,556 with the hourly momentum nicely unwound to renew upside potential as the hourly RSI bounces again around 40 and the hourly MACD lines turn up at neutral.

  • There is an opening gap that could unwind back to the support at 12,556 initially but this would be seen as another chance to buy.
  • Above 12,655 the next resistance is 12,696 and 12,825.

 


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