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DAX consolidating the breakout as bulls take a breath


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

 

The key upside break into all-time highs remains on course but is seeing something of a consolidation in early moves on Monday morning.

With such a strong move at the back end of last week the momentum indicators are now positively positioned again and the suggestion is that corrections will be seen as a chance to buy.

  • Subsequently the support band between the old resistance at 13,089 and 13,165 is a near term buy zone and support for weakness.

The hourly chart shows this is just a slight pause for breath as the breakout unwinds the stretched momentum, allowing indicators to renew upside potential.

  • Whilst the market trades above the 13,089 support the outlook remains strong for a 190 tick upside target of 13,270.

 


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