Last updated: May 3rd, 2017 at 09:55 pm
DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The breakout continues to consolidate but the outlook remains positive.
The number of bullish candles are encouraging and the momentum indicators remain positively configured, with MACD lines and Stochastics pulling higher and the RSI around 66 (rallies tend to go towards 70).
The hourly chart shows how the breakout has used the old resistance at 12,210 as a basis of support and this remains the case.
Today’s early gap down from 12,282 is still open and the strong configuration of hourly momentum suggests that corrections are a chance to buy.
One final caveat though… It may be worth watching out for the possibility of a near term bear divergence on the hourly momentum, which could be an early warning signal of a near term correction.
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