DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
The strong bullish candle on Friday (helped undoubtedly by a euro correction) has put the DAX back at another key crossroads.
Is this a rally going to again fail as it has down over the past couple of weeks around the old breakdown just above 12,300?
- There is a series of lows through late June/early July to overcome as overhead supply between 12,303/12,380 which is a key band of near term resistance now.
The near term momentum has picked up with a bull cross on MACD and Stochastics buy signal, however now this needs to be converted into a consistent rally.
That makes today’s session key.
Friday could now close above 12,303 but the bulls are still sitting with more confidence in the market.
- The hourly chart shows a move above 12,340 completes a head and shoulders reversal, with the momentum indicators more positively configured.
- Initial support is 12,269 with the rally failing below a pivot at 12,200.