DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)
The market continues to post a series of higher daily lows, but that does not mean the bulls are in control.
Yet another failed break above 13,000 was seen yesterday and now we are beginning to see the medium term positive technical picture beginning to be deconstructed.
Support from the seven week uptrend is now being broken, whilst the MACD lines are crossing lower.
Momentum in the bull trend is waning now and serious questions are beginning to be asked of how sustainable any move above 13,000 will be.
The key support remains the recent mini-range low at 12,884 but if the RSI and Stochastics also begin to deteriorate as the MACD lines are doing then the profit takers may begin to move in.
The hourly chart is not yet suggesting selling pressure is building, but watch for the hourly RSI moving below 40 and the hourly MACD lines dropping consistently below neutral.
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