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Sluggish DAX pushes above 13,000 but can it continue?


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

 

On purely a price basis the market continues to push higher and a close above 13,012 should be welcomed.

However once momentum indicators and trend analysis is introduced then the picture becomes much more cloudy for the continuation of the rally.

The eight week uptrend has been decisively breached now, whilst the MACD lines (the more considered, less volatile momentum indicator I look at) have crossed lower.

The RSI and Stochastics remains positively configured and this is helping to suggest the bulls are still in the driving seat, but there is a degree of tiredness creeping in.

Yesterday’s low breached the previous low for the first time in a week but rebounded into the close to leave a positive candle.

  • It will become increasingly important that the market can push above last week’s all time high of 13,031 and to continue to close above 13,000.

The hourly chart shows a fairly subdued bull move now with the RSI hovering between 40/60, but there is a bull bias still with the MACD lines consistently above neutral.

  • Support at 12,986 and then 12,959.

This is a tough bull run to back, but gains continue to be posted.

 


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