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DAX consolidating ahead of Fed and the elections


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

 

Futures have continued their consolidation of the past few sessions as traders look towards the implications of not only the Fed tonight but also the German Federal elections on Sunday.

The small candlestick bodies are building and this reflects the indecision of the market.

  • However the support remains intact above the old pivot support around 12,500 and this retains the positive outlook.

Daily momentum indicators are positively configured even if they have understandably started to tail off through this consolidation.

Corrections on a near term basis will remain a chance to buy and another higher low in the support band 12,300/12,500 would be an ideal buying opportunity now.

The hourly chart shows consolidation in the past week between 12,463/12,604 but with the hourly RSI remaining above 40 and MACD lines still above neutral the outlook is still positive.

  • Above 12,604 opens the key July high at 12,655.

 


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