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DAX remains a buy into intraday weakness


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

 

Corrections remain a chance to buy on the DAX as the market edges above the key July high.

The next technical hurdle to overcome could be seen today, should the market close above resistance at 12,655.

A rising wedge (or bullish uptrend channel) of the past couple of weeks continues to drag DAX futures higher, and the early intraday dip back today could help to provide the next opportunity to buy.

  • There is now a near term buy zone between 12,600/12,655 that the bulls will be eyeing.

Daily momentum indicators are strongly configured and also suggest buying into weakness.

The hourly chart shows how unwinding moves on the hourly RSI into the 40/50 range, whilst intraday drops on the hourly MACD lines back to neutral continue to be supported.

  • The succession of higher lows continues and the bottom of the channel is at 12,560 now but the bulls will be looking to resume control before then.
  • The support is bolstered at 12,540 with 12,500 increasingly key.
  • Initial resistance at 12,694 and then 12,825.

 


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