DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The market is consolidating as the initial slip back from the highs is now settling down.
Technically the daily chart retains strong momentum, but still looks a touch stretched.
The RSI is at 75 with the Stochastics just beginning to drift a touch lower in the wake of yesterday’s negative candle.
This could be once more the usual consolidation in the wake of a bullish breakout on the DAX and a consolidation that helps to unwind for renewed upside potential.
The breakout support band 12,411/12,518 remains key but the bulls would be looking to build support before then.
The hourly chart shows a trend higher of the past five sessions that comes in around the support of yesterday’s low at 12,666.
Furthermore, hourly momentum has unwound to levels where support tends to form.
- The support the bulls will be looking to hold on to would be between 12,600/12/666.
- Resistance remains the all-time high at 12,840.