DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The market has had a strong reaction to the threat of a downside break yesterday.
An intraday breach of the support at 12,130 could not be held and a quick unwind drove a close back above the support.
Adding in the positive open today the market has engaged a remarkable response.
However there needs to now be a move above Monday’s high of 12,297 in order to break a sequence of lower highs in the past couple of weeks.
Daily momentum indicators continue to look corrective within a strong medium term uptrend and the support at 12,070 looks to be strengthening now, being yesterday’s low and an old pivot on the hourly chart.
If the hourly momentum improves to an extent that the hourly RSI is consistently above 60 and the hourly MACD lines are consistently above neutral, this would suggest the bulls are back in sustainable control.
- The hourly chart shows today’s early gains have pushed already above yesterday’s high and now look set up for a test of 12,297 resistance.
- Support is with 12,210 initially and then today’s low at 12,189 and then the previous breakout support at 12,130.