DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
The breakdown following the big sell-off last week remains a key factor for DAX futures despite Monday’s rebound.
Overhead supply is sizeable between the old key lows 12,487/12,610 and the recovery this week still has plenty to do before the bulls can be back in control once more.
Monday’s strong bull candle did not breach the neckline at 12,487 but early moves today are ready for another test.
Should a second look at the resistance fail then the buyers will become increasingly cautious once more.
The momentum indicators are medium term corrective and this is a concern for the bulls.
The hourly chart shows that the early rebound today is an unwinding opportunity with the MACD lines back to neutral and hourly RSI tending to fail around 60.
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