DAX futures (March contract is FDXH7, continuation contract is FDXc1)
Strong moves higher on the DAX tend to be followed by minor corrective phases and this seems to again be the case.
The unwinding corrective move has set in as the market has opened below the support of yesterday’s low at 12,038.
Yesterday’s “bearish spinning top” is a mildly corrective candle and is helping to unwind some of the overbought momentum built up from the hugely strong bull move on Wednesday.
The daily chart shows breakout support at 11,895 and the market could now drift back towards this as a basis of support.
The medium term uptrend comes in today at 11,835.
The daily RSI is unwinding back from back and has tended to find support in the 50/60 range and this corrective move is likely to be a buying opportunity once more.
On the hourly chart there is a mini support band 11,965/,12030 but if this is breached the band 11,850/11,895 comes back into play.
Waiting for a buying opportunity rather than selling short seems to be the best strategy as the trend remains so strong on the DAX.
- Yesterday’s low at 12,041 is initial resistance and is also gap resistance too, before 12,082 and the key high at 12,100.