DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
The outlook has flipped once more as suddenly we find the bulls back in control.
After a couple of weeks of consistent selling pressure over Christmas, the failed downside break below 12,810 has been quickly turned on its head and the rebound is gathering upside pace again.
A strong bull candle in yesterday’s session may not have closed above 13,000 (which is a mid-range pivot) but the market has gapped higher at the open today and looks well set to continue the rally.
Momentum indicators have certainly turned a corner with the Stochastics showing a bull cross, whilst the RSI has picked up decisively from 39 to back above 50 this morning.
The hourly chart shows the pivot at 13,000 is now a basis of support whilst the bulls are quickly now eyeing the resistance at 13,137.
Hourly momentum is strong now and whilst the market holds up above 13,000 the outlook will continue to be an improving picture again.
One final caveat though, the DAX has really struggled to maintain trending moves in the past couple of months.
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