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DAX futures consolidate with corrections a chance to buy


DAX futures (Dec 2017 contract FDXZ7, Sept U7 contract EXPIRES TODAY, continuation contract is FDXc1)

 

As the front month rolls over to December, the market continues to consolidate.

The correction that has threatened over recent days has so far failed to materialise with recent candles showing long lower tails but buying into the close.

This suggests that the sellers are testing the water but are unable to take control near term.

Although momentum indicators such as the RSI (around 65), MACD and Stochastics (both rising in bullish configuration) remain strong, there is still a feeling that a near term correction would help to renew upside potential once more.

As such corrections remain a chance to buy.

  • The support band 12,300/12,504 is prime for the next higher low and would be a good medium term buying opportunity should one arise.
  • For now though the market consolidates under 12,556 (this week’s high)but above support of Wednesday’s low at 12,463.
  • Resistance of July’s high at 12,655 is now key.

 


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