We have been watching for a breakout of the hourly range for a few days, this morning, on open, it happened. I was not holding any position overnight and so I caught nothing of the move. 12835 seems to be the obvious target and I suspect that we will be taking that out pretty soon. I am thinking that we need to find a bit of value before going long, so a pullback would be a much better spot.
Most notable is the piercing of the Bollinger band from yesterday, which was also at the same time as a bearish divergence signal and touching range resistance. Three pretty compelling technical signals. A re-entry back through the Bollinger band (in hindsight) was a great signal, taking profits near to the midline. The midline acted as support and price jumped again, piercing the Bollinger band for a second/third time and a short from here would also have been a great signal.
Keep an eye out on the developing head and shoulders pattern from the daily chart. Especially if we break below the low from yesterday and continue to forge lower lows. This pattern would suggest a bearish reversal. Moving down to the hourly chart, we remain trapped in the range (mentioned above) and await a break for a further steer.
We had very thin volume in the market yesterday, thanks to the holiday in the UK and US. So the Dax futures market continues to move sideways for now. The buyers seem to be defensive at the moment and there are some technical indicators beginning to offer signs of reversal. MACD on the weekly chart is close to triggering a signal (sell).