DAX futures (March contract is FDXH7, continuation contract is FDXc1)
The DAX has taken off!
A huge upside breakout candle yesterday has taken the DAX to its highest level on the continuation chart since April 2015 with a small band of resistance 12,085/12,115.
This is a level that protects an enormous resistance at 12,430 which is the all-time high from 10th April 2015.
The daily chart shows the 11,895 breakout will now act as a basis of support and there is now a band of around 100 ticks above 11,800 to use as a “buy zone” on an unwinding correction.
The hourly chart shows the market is stretched now but with strong momentum any intraday dips are likely to be seen as a chance to buy.
Anything with the hourly RSI around 60/65 will be seen as an adequate unwind.
Below 11,800 would now be seen as a disappointing correction for the bulls.