DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
The DAX continues to bump its head on the underside of the old support of the key May low.
This old support at 12,487 is clearly now being seen as new resistance and has limited the upside for the past three completed sessions.
Again today the early move higher has been curtailed by the resistance as the recent consolidation continues.
Each of the past few sessions have opened down only to rebound higher but unable to break the shackles.
The hourly chart shows that this is leaving the DAX with a tight range of almost 100 ticks between 12,397/12,492.
Hourly momentum is increasingly neutral but the longer the market fails to break higher the more concerned the bulls will be.
The breakdown of 12,487 completed a large top pattern that implies downside towards 12,030 and the breakdown which is now resistance is a neckline of overhead supply.
- A move back below 12,397 would re-open the low at 12,303 and re-engage the selling pressure.
- Overhead supply comes with the resistance of the old lows 12,487/12,525/12,610.