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DAX bulls breaking out again


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

 

DAX futures have broken out above key resistance as the bulls once more grasp control.

The positive candles have been racking up in recent sessions as despite early weakness the buyers have been controlling the trading session.

With the support of the recent rising wedge holding firm, this build-up of positive intent has now culminated in today’s breakout above initial resistance at 12,637 and also above the key July high at 12,655.

  • The next step will be for a closing breakout above 12,655 whilst the high of the rising wedge currently comes in today at 12,690.
  • Consistent closing levels above 12,655 would also begin to open the all-time high at 12,935.

Momentum indicators are strongly configured with the RSI pushing higher towards 70, MACD lines positively configured and the Stochastics strong.

This all continues to suggest intraday weakness is a buying opportunity.

  • The hourly chart shows 12,600 to 12,625 is initially supportive with any unwind on the RSI towards 40/50 a chance to buy.

 


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