DAX futures (March contract is FDXH7, continuation contract is FDXc1)
The daily chart shows yesterday’s candle was mildly lower into the close from the open, however the intraday recovery from the low at 11,718 was a positive recovery.
The market also closed higher on the previous session close and the bulls are still in the driving seat.
The momentum indicators are still suggesting an improving and positive outlook with RSI above 60, Stochastics rising and now a bull cross on the MACD lines.
Holding above the breakout range 11,700/11,725 is now the key near term factor, as corrections are being bought into.
The hourly chart reflects the correction is unwinding momenutm back to a level where teh bulls can see renewed upside potential.
Today’s session is turning into something of a neutral move, but as long as the market remains above 11,700/11,725 the outlook remains positive for a move back towards the highs.
- Resistance is now today’s initial high at 11,811 but a retest of 11,846 is likely and this protects 11,895 key resistance.
- Support is strengthening with the 11,718 low and a support band 11,700/11,750.