DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
Despite the strong bullish session yesterday, rallies on the DAX remain a chance to sell.
The consistent run of lower highs and lower lows over recent weeks, in conjunction with negatively configured momentum means that the bulls are still struggling.
Today’s session will be seen as important as the rally failed under the 12,303 old support yesterday and a resumed move lower today would simply reinforce the concerns that the bulls face.
The daily RSI has been failing at lower levels for three months now and another failure under 50 would be seen as a chance to sell.
The hourly chart shows momentum in the rebound would begin to be lost on a move below 60 on the RSI and this would see added confirmation if the MACD lines also crossed back lower.
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