DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
DAX futures remain under pressure as any sign of a rally continues to be sold into.
This means that support levels will continue to be broken as the market moves back towards a test of the next key low at 11,965.
The failure once more to break back above the previous key support around 12,300 bolsters what is now a sharper three week downtrend and means that the support at 12,077 is now set to be tested.
The sharper downtrend comes in today at 12,250.
Momentum indicators remain negative across the board and suggest that rallies are a chance to sell, however the RSI also shows further downside potential.
- The hourly chart shows a pivot at 12,200 is an initial basis of resistance above today’s traded high at 12,172.
- Below today’s low at 12,117 there is little support until the recent key low at 12,077.
The average true range is 143 ticks today, suggesting a rally from today’s low at 12,117 would struggle to breach the downtrend at 12,250.