DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The consolidation continues but it is interesting to see that the bulls are still reluctant to give up the gains.
There is though now a definitive near term support to point to that the bulls will work to hold on to.
The reaction low following the initial break to the new all-time high of 12,840 is now at 12,666.
Yesterday’s reaction low was 12,667 before the buyers returned again.
This suggests that the support is now in place, but a breach (especially on a closing basis) would now take on a near term corrective outlook.
It would complete a small top and imply 175 ticks of correction back towards the support band 12,411/12,518.
The momentum indicators suggest this is still a consolidation for now but are close to becoming corrective if the downside pressure resumed.
- The hourly chart shows an increasingly neutral outlook with trading between 12,666/12,793.
- However there is a sense of a growing bear bias that could put pressure on the 12,666 support.