DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
Is the DAX due another near term correction?
The strong run higher hit a bit of a roadblock yesterday with a bearish candle, however it was interesting to see the candle nowhere near as bearish as on the cash index, following the Wall Street rally into the close.
Despite this though there is still a crossing lower of the daily Stochastics whilst the RSI is again looking to fail around the 70 mark.
These signals have previously been followed by periods of near term correction (late Feb and early March).
There would easily be room to unwind back into the 12,120/12,210 support band (old breakouts).
The hourly chart shows that there is a gap down at the open today from last night’s 12,308 close and the market response to potentially filling (bearish) or closing (bullish) this bear gap will be key.
- Resistance is 12,340/12,355 and the key high now at 12,411.
- Today’s early low at 12,261 is initially supportive, before yesterday’s low at 12,234.