DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
With the bulls losing a degree of control this week, the DAX has corrected back to the band of near term pivot support within the 12,493/12,880 trading range.
Yesterday’s drop of over 130 ticks was the biggest down day since mid-May and challenges the bulls once more.
The momentum indicators have still got a positive bias with the RSI continuing to hold above 50 and the Stochastics rising, however the bear kiss on the MACD lines is a suggestion that the bulls have not got the control they would like.
- The 12,666/12,709 band is a pivot in the middle of the range and a close under 12,666 would increase the downward pressure for a correction towards the lows.
The hourly chart shows the hourly RSI is back to a level where the buyers have tended to regain control so this is the DAX at a near term crossroads again.
The market has been slipping slightly lower in the early moves without any real conviction and it appears that the market is consolidating around this pivot today.
- A close back above 12,709 which is now a near term basis of resistance would improve the outlook once more.