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DAX futures analysis 05/07/2017


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.

  • Support is at today’s low of 12,396.
  • Above 12,487 the resistance is 12,526 and then 12,610.

 


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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.