DAX futures (March contract is FDXH7, continuation contract is FDXc1)
The recovery in the past couple of sessions has continued early today but for now there is still a sense that rallies will be seen as a chance to sell within the recent range.
However there are some signs that the bulls are fighting, with the daily momentum indicators ticking higher within their corrective configurations, however more needs to be done to suggest a recovery of sustainability is progressing.
The hourly chart shows that 60 has been the limit on the hourly RSI over the past 9 sessions and similarly neutral on the MACD has limited, whilst the recent downtrend is being tested.
However the downtrend could still be broken as part of a consolidation move but this would still simply be a pause for breath.
There is a resistance band between 11,600/,11,700 that is key now within the range with the 11,600 pivot level being tested now but the early push higher.
If the bulls can sustainably push above 11,600 and pull the hourly RSI above 60 and MACD lines above neutral it would neutralise a corrective near term outlook.
Above 11,700 turns positive within the range.
- Support 11,555 (today’s gap support) and 11,475 (yesterday’s low)
- Resistance 11,679 (Tuesday high) and 11,700