DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
Will the early bounce today turn out to be another chance to sell?
In the last couple of weeks the market has been tracking lower.
Thursday’s huge bearish engulfing candle still dominates the near term negative outlook with the market continuing to trade below the old key support at 12,487.
With Friday’s confirmation bear candle lower, this suggests that whilst today’s early bounce is encouraging, the move is unlikely to change the outlook.
Momentum indicators are correctively configured and add to the assertion that a technical rally will be seen as the next opportunity to sell.
- There is a band of resistance 12,427/12,487 which will be seen as a near term “sell-zone” and today’s early rebound has hit 12,410 before falling stalling.
- Expect a retest of Friday’s low at 12,303 whilst the April low at 11,965 is the next key low.
- The hourly chart shows resistance at 12,452 (Friday’s high) and then at 12,527 ((Wednesday’s low).