DAX futures (September 2017 contract is FDXU7, continuation contract is FDXc1)
Once more the market is consolidating the recent near term correction and the bulls are looking to resume control.
The medium term uptrend continues to shallow and lengthen which suggests that there is a mild buying pressure in the market but the buyers are struggling to sustainably maintain the gains.
Having pulled back from the new all-time high at 12,949, the market continues to shallow the uptrend which is now linking the lows dating back to late April.
The bear candle of Friday seems to be cancelled out by the early gains today with the market again eying a test of the 12,800 resistance area that had capped the gains late last week.
Daily momentum indicators are increasingly neutral and this comes as the struggle for the buyers continue.
The hourly chart shows an improvement in near term momentum this morning with the hourly RSI at a four day high, and if the MACD lines confirm this by a move above neutral then the outlook for a sustained near term push above 12,800 would improve.
- This would then complete a small base implying around 100 ticks of upside and re-open the 12,949 all time high again.
- Initial support is a breakout at 12,745 and then the opening gap at 12,723.