DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
A strong open has improved the outlook and taken the market back above the key medium term pivot at 12,487 once more.
Despite this though, this pivot is still the neckline of a top pattern and there is a corrective look to the market having topped out.
What is positive for the bulls is that a strong uptrend has been forming since February and remains intact, and this suggests that the DAX is nearing a key crossroads.
The uptrend is at 12,370 now, but a sequence of lower highs is in place over recent weeks and is adding corrective pressure.
The pivot remains a key gauge of this.
Today’s rally back above moves to improve the chart again, especially if the market can hold above.
- However the resistance is strong up at 12,672 whilst the 55 day moving average which has previously been supportive is now rolling over and providing resistance at 12,637.
- The hourly chart shows a neckline of a top at 12,567 will be an area of resistance as the recovery again develops.
- The pivot at 12,487 is again supportive with 12,408 and 12,374 further back.