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DAX consolidation becoming increasingly key

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


Futures have taken on an uncertain outlook in recent sessions.

The selling pressure may have calmed since the market started building support between 12,842/12,900 however there is still a concern that price action of recent weeks could ultimately turn into a large two month top pattern.

The last two sessions show that the bulls have failed twice to regain the initiative.

Long upper shadows and yesterday’s negative one day candle shows that the support at 12,842/12,900 should not be taken for granted.

  • A prospective lower high at 13,160 below the 13,209 rebound high is now threatening.
  • The support to watch near term is at 12,975 as this seems to have become a floor in the past few days and a breach would re-open the move back towards 12,842/12,900 (which is now an increasingly key medium term support).

On the hourly chart, momentum indicators are dropping away as the bulls have struggled and already we see today’s high at 13,054 as the next potential lower high.

This is an increasingly important consolidation now that could be crucial for medium term direction.

  • Resistance at 13,209 is key along with support at 12,843.


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