DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
The old breakdown support at 12,487 remains a barrier of resistance as DAX futures consolidate.
It is interesting to see the past couple of sessions have been posting positive candles even if yesterday’s session was a mild close lower on the day.
This suggests that the bulls are still present in the market and are testing the resistance.
Would the near term outlook improve with a close above 12,487?
There is a series of old lows which make up an area of resistance 12,487/12,610 that need to be overcome for any sense of a sustainable rebound.
Momentum indicators are medium term corrective now with MACD lines negative and RSI struggling under 50.
The Stochastics are though turning higher which hints at an improvement in the near term, however the breakdown was a key move and rallies are still to be seen as a chance to sell.
The hourly chart shows momentum on hourly RSI (around 60) and MACD lines (around neutral) are on the brink of a near term improvement.