DAX futures (March contract is FDXH7, continuation contract is FDXc1)
The consolidation on the DAX continues to unwind the strong breakout back towards the support of the four month uptrend and the old key resistance at 11,895.
The momentum indicators remain positively configure and suggest that corrections remain a chance to buy again.
The daily MACD lines have come back together again just as the market has unwound to support, whilst the RSI is back to around 60.
This suggests that a near term crossroads is approaching.
A close back below the uptrend (which is today around 11,880) would re-open 11,700 and be a disappointment for the bulls (although certainly not terminal).
However, looking at the hourly chart, there is a slowing of the corrective phase now with the hourly RSI bottoming above 30 and the MACD lines crossing higher.
- Yesterday’s low at 11,917 is initially supportive with a buy zone on the hourly chart around 11,895.
- Initial resistance remains around 12,000 before 12,056 and the key high at 12,099.