DAX FUTURES ANALYSIS

The bulls tentatively remain in control of DAX futures but seeing a softer open that should help to be a buying opportunity.

With the March contract expiring today we move on to looking at the June contract.

The market pulled strongly higher on Thursday but closed well off the highs and the intraday dip has continued today.

The daily chart of June 2017 shows that pressure continues to be put on the four month uptrend which is creaking.

However there is a basis of support around 12,050 which the bulls will be eying now as a potential entry again. The hourly chart shows the momentum has unwound to an area where the recent corrections have formed support on the RSI and also the hourly MACD lines are retreating back towards neutral.

However a low now needs to form and buying on the formation of support is always the more cautious way to play a market that has been tinged with uncertainty over the past few weeks.

As long as the DAX June 2017 contract holds support above 11,950 the bulls will retain a degree of control, with the breakout support at 11,920 being key.

DAX FUTURES ANALYSIS

Strong moves higher on the DAX tend to be followed by minor corrective phases and this seems to again be the case.

The unwinding corrective move has set in as the market has opened below the support of yesterday’s low at 12,038.

Yesterday’s “bearish spinning top” is a mildly corrective candle and is helping to unwind some of the overbought momentum built up from the hugely strong bull move on Wednesday.

The daily chart shows breakout support at 11,895 and the market could now drift back towards this as a basis of support.

The medium term uptrend comes in today at 11,835. The daily RSI is unwinding back from back and has tended to find support in the 50/60 range and this corrective move is likely to be a buying opportunity once more.

On the hourly chart there is a mini support band 11,965/,12030 but if this is breached the band 11,850/11,895 comes back into play.

Waiting for a buying opportunity rather than selling short seems to be the best strategy as the trend remains so strong on the DAX.