DAX futures (March contract is FDXH7, continuation contract is FDXc1)
After the huge gains of yesterday there is a near term correction developing.
This is not to be unexpected after such a strong move that traders will look a touch more cautious, however pullbacks are still likely to be used as another chance to get long as the near term stretched position unwinds.
The market peaked at 12,100 yesterday with a hugely strong bull candle but has dropped back today.
Cold this become a similar move to what we saw on the late January upside break and the late February break.
Both were followed by three or four sessions of unwinding moves before the bulls regained control.
This is showing though on the daily chart today with an initial mild bear candle.
The 11,895/12,030 band is now supportive.
The intraday chart shows the hourly momentum indicators pulling lower and looking near term corrective.
- A near term band of support is 11,965/12,030 and there is certainly room for an unwind near term.
- Resistance is 12,100 from yesterday with the continuation chart showing 12,114 now protects the all time high at 12,430.