DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
The incredible rebound on the DAX continues and is now back within range of a test of the key December resistance at 13,336.
It seems incredible to be saying this considering just a few days ago the DAX was on the brink of a significant breakdown, however the turnaround in sentiment has been remarkable and the bulls go into today’s payrolls report with a spring in their step now.
Momentum indicators are clearly pulling higher again but the bulls will need to retain the impetus built up over recent days as the DAX has recent history of failed breaks and retracements.
The RSI needs to move decisively above 60 to really suggest the move could be sustainable.
Ahead of payrolls the bulls are on the charge again and the 13,336 resistance is the next barrier but the hourly chart shows the market is extremely stretched now.
The hourly RSI is more stretched than any time since early October and this could tempt the profit-takers, and payrolls could be key to this.
At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.