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DAX consolidating as the bulls pause for breath


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

 

The steam appears to have gone out of the push into new high ground.

However, with the RSI peaking over 80 this is not to be unexpected and a pause for breath can often be seen with these moves.

The market has subsequently developed a consolidation for the past few days as the uptrend catches up (currently around 12,870).

Despite this, momentum indicators are just beginning to drift lower rather than any more severe unwind.

This continues to suggest that corrections will be seen as a chance to buy with renewed upside potential.

  • The support comes in between the filled gap at 12,884 and the previous all-time high at 12,935.

This consolidation is reflected on the hourly chart which shows a sideways band forming above 12,925 which is helping the stretched hourly momentum to unwind back to 40 on the RSI and neutral on the MACD lines.

  • The outlook will remains positive above 12,884 with a move below 12,842 turning corrective.
  • A new all-time high at 12,988 is resistance.

 


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