DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
The oversold technical rally has stalled a touch this morning but it is interesting that a positive candles are now beginning to form.
Looking at the DAX after a few days of not having analysed the market, the first issue to consider is whether this is merely a dead cat bounce (albeit an impressive one so far).
Opening so strongly lower on Tuesday only to then trade higher and continue higher again yesterday is a positive reaction after such a precipitous decline.
A major factor here will be how the market reacts around the old key support at 12,730 from the January low.
Also consider the Fibonacci retracements of the decline from 13,596/12,070.
38.2% Fib has been a barrier in the past two sessions at 12,653 and needs to be overcome to suggest the bulls are building something sustainable.
There is a degree of settling down of the recent volatility today (certainly compared to recent wild sessions), but even then the market is still around 80 ticks lower.
Concern for the bulls comes with the hourly momentum though which has the RSI still failing around 60, whilst the MACD lines are failing around neutral.
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