DAX FUTURES ANALYSIS 09/05/2017
The market is consolidating as the initial slip back from the highs is now settling down.
Technically the daily chart retains strong momentum, but still looks a touch stretched.
The RSI is at 75 with the Stochastics just beginning to drift a touch lower in the wake of yesterday’s negative candle.
This could be once more the usual consolidation in the wake of a bullish breakout on the DAX and a consolidation that helps to unwind for renewed upside potential.
The breakout support band 12,411/12,518 remains key but the bulls would be looking to build support before then.
The hourly chart shows a trend higher of the past five sessions that comes in around the support of yesterday’s low at 12,666.
Furthermore, hourly momentum has unwound to levels where support tends to form.
- The support the bulls will be looking to hold on to would be between 12,600/12/666.
- Resistance remains the all-time high at 12,840.