DAX futures analysis 02/06/2017

DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)

 

Breakout seems to have been achieved.

Although the 12,666 pivot once more kept the bulls honest yesterday, a opening gap higher today has taken DAX futures to a new two week high.

• The breakout above 12,709 resistance should now enable upside traction to be formed and the bulls to start to look towards testing the 12,843 all-time high again.

Momentum indicators are now finding upside impetus again with the Stochastics crossing back higher, the RSI confirming the two week high on the price and the MACD lines looking to bottom again.

There is an opening gap higher today which has been left at yesterday’s high of 12,697 and this ideally would be filled before the market would move higher again.

Look to use corrective dips today (with Non-farm Payrolls volatility perhaps) as a chance to buy now.

• The hourly chart shows positive momentum configuration and that there is a band of support now 12,666/12,709.
• There is minor resistance at 12,790 that is protecting the 12,843 resistance.