DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)
The sell-off continued during yesterday’s session but there are increasing signs of support having now been formed.
Is the correction now over?
The initial answer is that there needs to be more evidence of sustainable support before being confident of moving back into long positions.
Yesterday’s bearish candle closed well above the low of 12,958 into the top half of the session.
Momentum indicators on the daily chart are just beginning to now slow their correction which is interesting as the RSI is ticking higher just under 50.
The caveat is that support looked to be forming early in yesterday’s session only for a strong sell-off subsequently coming though.
However there are signs of improvement on the hourly chart.
If the hourly RSI can push and hold above 50 and the Stochastics bolster above 80 with the hourly MACD lines above neutral then the outlook will begin to look far more positively configured.
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