DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
Equities in Europe have responded strongly this morning and the DAX has broken to new high ground again.
The minor consolidation in the wake of the huge upside breakout (following the first French Presidential election result) is now pushing higher again.
Three consecutive positive candles are now pushing into new high ground and the market looks strong.
Momentum is bullishly configured with RSI, Stochastics and MACD lines all strong.
There is a slight argument for the market being a touch stretched at these levels on the RSI, but there is little reason not to continue to buy into weakness
- The hourly chart shows support with a neat term breakout 12,488/12,518, whilst the 12,411 support is increasingly key near to medium term.
- The high today at 12,575 is initial resistance.
- An initial upside target could be derived from a breakout of the near term range meaning c. 90/100 ticks towards 12,610.