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Is it time to sell the DAX within the range again?


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

The medium term range continues to play out on DAX futures.

In the past four weeks the market has been oscillating between 12,806/13,209 and every time the market moves into a resistance band 13,100/13,209 the sellers resurface, whilst every time the market dips into the support band 12,806/12,900 the buyers take back control.

Yesterday we saw initial opening gap to the downside into the lower reaches of the range subsequently finding the buyers taking over once more and the gap being closed.

This is all resulting in the market rebounding into the middle of the range again.

The price action over the past week would suggest there is a slight negative bias within the range now, with a five day downtrend showing on the hourly chart and the RSI tending to top out around 60.

  • This would suggest that the early move higher today could be sold into, with this week’s resistance and the high at 13,119.
  • There is a near term pivot at 12,965 which is supportive but if this is breached then the market is likely to fall back towards the range extremes again.

 

 


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