DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The strong bull recovery yesterday now means that the DAX is at a key crossroads near term.
The DAX rebound went further than I had expected as it posted a strong bull candle of almost 130 ticks higher.
However this move is back to the underside resistance of the previous uptrend and this is now becoming a basis of resistance.
A failure under the previous lower reaction high at 12,142 would now mean a third lower high over the past seven sessions and once more question how strong the bulls are.
The daily RSI failing under 60 would also question the strength of the recovery.
The hourly chart shows the rebound went through the band of resistance 11,950/12,050 and this would suggest this move is simply part of a wider range phase.
The early gap up this morning has though been filled and the bulls are not quite giving up yet.
- However a move back below the initial support at 12,026 would again increase the conviction of a range play at least now.
- The resistance at 12,142 is increasingly important now.