DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
Is the DAX set once more for a consolidation following a strong breakout?
It seems that time and time again throughout this trend higher, the breakouts are followed by consolidation, with the trend struggling to retain traction.
This continues to give renewed chance to buy.
This morning’s mild drop back is a case in point as the market has pulled back from yesterday’s high of the strong bull candle at 12,663.
There are mitigating circumstances today in front of Non-farm Payrolls and the French election on Sunday though.
Also the daily RSI is above 70 again and this could be a limiting impact on the near term gains.
- The hourly chart shows a mild corrective move that the bulls will look to find support above the support band 12,518/12,542.
- Corrections would still be seen as a chance to buy for further all time high ground above 12,663.