DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
The market may have failed in its upside break yesterday, but the prospects of a near term recovery are growing.
The daily chart shows a negative candle with a failed break of the 12,487 neckline resistance, but another strong open today is once more testing the barrier.
Can the market make the breakout this time?
The daily momentum indicators are beginning to track higher, with the RSI at a 2 week high and the Stochastics also ticking higher.
There needs to be a close above 12,487 to complete a near term range breakout (of the 12,303/12,487 range) which would imply a rebound to 12,670.
The hourly chart shows the pressure growing on the resistance with the moving averages bottoming and the momentum indicators an increasingly positive configuration.
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.