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DAX futures price action

Yesterday and overnight stock futures made spectacular bullish run encouraged by better than expected US earnings data. Stock markets felt optimistic at last and significantly raised across board.

Is this renewed optimism has any kind of solid base ? I am not sure yet and today’s morning price action does not confirm it. All eyes now on US market opening and we will see if this is just a bounce before another plunge or indeed stock market is set for another bullish leg.

DAX H1 Oct 17.png

DAX  Dec futures chart

Hence, trading today requires much caution. On 1-hour chart we can see that price corrected enough from yesterday’s levels and in fact, we can spot 2 solid support levels to enter tactical intraday longs. Supports 11680 and 11610 are  convenient levels  to place Buy limit order.

It is likely that 11610 support will sustain and we will see another bullish leg to 11920 and 12050. However, bigger picture sentiment  is still looking south, therefore traders  shall watch for the breaking below  all-important 11610 area. If broken, this is a signal that market correction resume.

Have a nice day and safe trades !