Last updated: May 3rd, 2017 at 09:55 pm
DAX futures (March contract is FDXH7, continuation contract is FDXc1)
There is now a degree of uncertainty for the outlook in the wake of the two strong bear candles that ended last week.
However in closing well off the low of the day on Friday, the bears do not appear to have sustainably grasped control of what could have been the beginning of a corrective phase.
The support of a pivot around 11,700 is now building (Friday’s low at 11,719) is holding.
However, with the RSI having turned lower from 70 to below 60, and the Stochastics also rolling over, there is a raft of mixed technical signals now.
Trading between 11,700 and the old resistance at 11,895 may now be a zone of uncertainty.
Today’s open has been higher but there is as yet a lack of real buying pressure, with the daily candlestick showing an almost doji pattern.
The hourly chart shows that the old uptrend channel could also become a basis of resistance and the momentum indicators have certainly lost their bullish configuration.
Watch the hourly MACD lines which have just crossed higher, if they fail around neutral then the selling pressure could begin to develop.
At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.