DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The bulls are stuttering again in their recovery following last week’s sharp correction.
Yesterday’s session saw a test of the previous breakdown (which is now a pivot) around 12,666, but that move failed.
However, a subsequent negative candle is being cancelled out early morning today, with that pivot resistance at 12,666 again under pressure.
The reaction of the bulls at this resistance again today could be key to the near term outlook as another failure would increase the pressure.
Daily momentum indicators are still positively configured and the recent corrective move is stabilizing.
Ultimately corrections continue to be bought into and a close back above 12,666 today would be a positive reaction.
- This would also put in place a higher low at 12,565 above the low at 12,492.
The hourly chart shows a strong early reaction early in today’s session with the bulls really giving it a go now.
However, as we saw in the wake of yesterday’s later decline, the move needs to be consolidated and confirmed.
- A decisive move above 12,666 opens an old pivot at 12,790.