DAX FUTURES ANALYSIS 12/07/2017
The market may have failed in its upside break yesterday, but the prospects of a near term recovery are growing.
The daily chart shows a negative candle with a failed break of the 12,487 neckline resistance, but another strong open today is once more testing the barrier.
Can the market make the breakout this time?
The daily momentum indicators are beginning to track higher, with the RSI at a 2 week high and the Stochastics also ticking higher.
There needs to be a close above 12,487 to complete a near term range breakout (of the 12,303/12,487 range) which would imply a rebound to 12,670.
The hourly chart shows the pressure growing on the resistance with the moving averages bottoming and the momentum indicators an increasingly positive configuration.
Support continues to strengthen within the pivot of the band at 12,400.
There is though overhead supply from the lows 12,487/12,525/12,610.
The medium term top remains in place until a breach of the 12,730 reaction high.