DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
The sharp selling pressure has been abated for now but the bulls have still not yet grasped control of the market back again.
Yesterday’s low at 13,008 above the key low at 13,000 was certainly an encouraging response by some punch-drunk bulls, whilst the formation of a bull candle will add to confidence.
However, the move has simply helped to neutralise the outlook and given today’s early reaction lower the bulls still have work to do to regain the ascendancy.
The daily RSI is around neutral, as are the MACD lines.
The bulls will be looking to respond to an early dip, and the hourly chart shows momentum indicators picking up again.
Yesterday’s rebound high failed at 13,136 (which was the old gap support) and this is now a resistance to watch for today and if the buyers can respond to pull a move above this then the near term outlook will be improving again.
So we see two near term levels that will derive near term direction.
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