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DAX bulls still holding firm


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

 

With the rising wedge intact, near term weakness remains a chance to buy.

DAX futures have so far held up well on the negative implications of the uncertainties of the Federal Election and the geopolitical tensions.

This shows that the buyers are still strong in the market.

The market has closed lower for the past two sessions, but each time above the opening gap lower and this reflects positivity.

Another lower open today but the early weakness seems to once more be supported.

  • The market is though testing the recent support of the wedge and the support around 12,540 is growing, whilst the bulls will be looking to bolster the support above the 12,500 support.

Daily momentum indicators remain positively configured with the RSI still in the mid-60s and Stochastics holding well above 80.

The hourly chart shows the market is testing the positive momentum configuration and the hourly RSI needs to hold on above 40.

  • A close below 12,540 would begin to question the bullish position and below 12,500 would add further fuel to a correction.
  • Resistance is at yesterday’s high at 12,624 with 12,637 protecting the July high at 12,655.

 


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