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DAX futures analysis 10/05/2017


DAX futures (JUNE 2017 contract is FDXM7, continuation chart is FDXc1)

 

Consolidation in the wake of the latest upside break continues.

A second successive inside day reflects a market settling down.

Although the market managed to complete an all-time closing high last night, there are now lower daily highs in place as the market has started to drift sideways.

I continue to see this as a consolidation that is a result of a stretched market and a move that is the latest in a line of consolidations that follow upside breaks.

The RSI is just pulling slightly lower to a still strong 74, whilst the MACD lines and Stochastics are strongly configured.

There is still little reason to believe that this is a precursor to a corrective phase.

The hourly chart shows the market has consolidated back to a six day uptrend as the hourly momentum indicators also unwind to levels where the bulls tend to resume control.

  • Initial support at 12,666/12,699 is holding and this comes above another minor support at 12,600.
  • Yesterday’s high at 12,793 is initial resistance with 12,840 now key as the all-time high.

 


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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.