DAX futures (Sept 2017 contract is FDXU7 and expires on 15th Sept, continuation contract is FDXc1)
After adding as much as 500 ticks in a week, the market is just consolidating slightly today.
Having broken out above several key resistance levels, the next phase of this bull move will now be to solidify support.
This will involve leaving a higher low around recent key breakout levels.
This means that the 12,340/12,487 band now becomes a key area for this support and a medium term “buy zone”.
Momentum indicators have taken on a more bullish medium term configuration now with the RSI into the mid-60s and MACD lines rising strongly.
The hourly chart shows strong momentum configuration with corrections being seen as a chance to buy as the stretched momentum unwinds.