DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
A hugely strong bull candle has changed the outlook once more, but now has to be confirmed.
The subsequent session following a strong move is always interesting and the market needs to confirm what seemed to be a move that put the bulls back in control once more.
A 185 tick upside target from the break above 12,487 was 12,670 and the market came within 20 ticks of achieving the move in one session yesterday.
This leaves some further room to run higher.
- However there is a reaction high at 12,730 which needs to be breached to really suggest the bulls are back, otherwise there is still a run of lower highs intact.
Furthermore the big 460 tick top pattern would still be intact below 12,730.
There is an improvement in daily momentum now with the RSI above 50, MACD lines crossing higher and Stochastics rising strongly.
- This means the outlook is somewhat neutral now between 12,487/12,730, especially if today’s session turns negative again.