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DAX consolidation ends with a huge upside breakout


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

 

The consolidation has been smashed by the ECB decision that weakened the euro and pulled the DAX sharply higher.

A breakout above 13,089 has seen futures storming to all-time highs and implies around 190 ticks of upside measured from 13,089 towards 13,280.

The breakout of the resistance now becomes supportive but the bulls are well in control of this breakout.

  • This is shows on the hourly chart with the market gapping higher at the open today and leaving initial support around 13,140.
  • A support band of around 50 ticks is therefore in place between 13,090/13,140.

Additionally it means that weakness will be seen as a chance to buy, with hourly indicators initially stretched.

Any unwind is likely to be pounced upon by the bulls.

 


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