DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
The breakout to all-time highs on the DAX is being held, but can the bulls sustain the move?
An intraday gap higher at the open yesterday was bullishly filled and this will help to bolster confidence in the breakout.
However there is a degree of reluctance to push forward and today’s session could be key.
Daily momentum indicators are strongly configured now with the RSI in the high 60s and two month highs, whilst the MACD lines are advancing strongly too.
On the hourly chart a minor consolidation is taking hold now and it is interesting to see the five day uptrend channel breaking down this morning.
A consistent drop on the hourly RSI below 60 would suggest the bulls are waning near term and could usher in a minor corrective phase that could unwind some of the recent gains.
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