DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)
How the bulls react in the next couple of sessions could be key to the medium term outlook.
A bull hammer candlestick has been posted as the market has rebounded from yesterday’s low of 12,843 with as much as 225 ticks of rebound already seen this morning.
However this is a move that needs to be treated with caution as experience off trading the DAX in the past week or show suggests that early morning gains are continually sold into as the session develops.
Can this rebound hang on?
As with yesterday, a close above resistance at 13,090 is key, as is now the 23.6% Fibonacci retracement of the big bull run from 11,865 to 13,533 at 13,139.
There is also a downtrend formation which comes in around 13,090 too today.
This rally could easily be seen as a chance to sell once more.
The hourly chart reflects an improvement but in effect simply for no just an unwinding move that could help to renew downside potential.
At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.