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DAX looking for direction amidst consolidation


DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)

 

The market has lost the impetus of the trend higher but the sellers are unable to grasp control.

This comes as a series of choppy sessions have been seen in recent days as the market seems to trade around the 13,000 level.

Traders are in need of a catalyst now to push then in a direction.

Momentum in the push higher has certainly waned in recent sessions with the bear cross on the daily MACD lines and the Stochastics also confirming a corrective signal.

However it is notable that there is a lack of selling pressure as the support around 12,900 remains firmly intact.

The prospect of this turning into a top pattern still remains but for now the appetite for selling is just not there.

This is reflected in the hourly chart with the market ranging, the hourly moving averages flat and converged.

The hourly RSI is oscillating within 40/65 suggesting the slightest positive bias, but neither the MACD lines nor Stochastics are showing little sense of direction.

  • Support initially at 12,965 and 12,948 before the key near term 12,900.
  • Resistance is 13,066 before the all-time high at 13,089.

 


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