SEP'17 DAX - Daily Hammer point to relief rally

​SEP'17 contract - This week’s signals for DAX have continued to point lower and the initial move on Monday was a bearish gap open and initial losses of just over 100 Pts. However, buyers have returned to the market with futures trading from in between a 50-62% pullback to the entire 2017 gains, an area which is expected to provide some support. A recovery yesterday to close little changed and form a small daily Hammer is mildly positive and although gains are likely to be temporary it has switched Tuesday’s signals to cautiously bullish and the call is to buy on the open and then at 12187.5, the last 6 hour low with a stop loss at 12133.0, yesterday’s base. Targets are to 12280.0, 12337.0, a 38% recovery to the losses posted since last week’s high and 12400.0, a deeper 50% correction.