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.
- Support is now initially at 11,800 then 11,719 and the pivot at 11,700.
- Resistance is at 11,895 with 11,970 and 12,030 now key.