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DAX bulls still have the shackles on


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

 

The bulls have been shackled throughout this week and still in the wake of the Fed seem unable to make the break.

This is likely to be due to the German election which is held on Sunday which is likely to keep the reins tight on the bulls into the weekend.

Technically the market remains supported above 12,500 which this again providing the basis of support during yesterday’s session.

An early move higher today has been pared but there is still definite intent from the bulls, with the resistance at 12,655 well within range now.

Daily momentum indicators retain a positive configuration with weakness being bought into.

This is reflected on the hourly chart which shows a gradual posting of higher lows over the past couple of weeks, whilst hourly momentum remains positively configured (RSI above 40 and MACD lines above neutral).

  • The near term bulls lose control below 12,463 but as long as support forms above 12,300 the medium term bulls will be happy.
  • Initial resistance is the high at 12,6s9 and then 12,655, above which the bulls are on a run.

 


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