Dax futures headed towards our target of 7896/7906 to take profit on longs but halted a little early at 7888. The new high followed by a lower close is an early warning that this market may be running out of momentum and could lead to profit taking today, but there is no sell signal yet. Therefore buying in to weakness may be still be the safest strategy. Support today at 7835/33 but below here look for 7802. We should see a bounce from here and possible low for the day but a break targets 7776 and maybe the 9 day moving average and short term 61.8& Fibonacci support at 7749. This should be a very good buying opportunity this week.
Yesterday’s high should act as resistance again and then we should finally hit our target of 7896/7906. This may hold the top for now but a push through here would see us on the way to 7930/33 and then 7988/96