DAX futures (March contract is FDXH7, continuation contract is FDXc1)
The market may have rallied yesterday and opened higher today, but the near term outlook remains negative.
A sequence of lower highs over the past couple of weeks continues a corrective move that continues to find resistance under the 11,700 resistance area.
Momentum indicators remain on a near term corrective configuration and the DAX is now trading below the falling 21 day moving average.
This points towards selling into strength.
The hourly chart shows a recent downtrend and finding resistance under hourly moving averages.
The hourly RSI is failing around 55/60 consistently now and hourly MACD lines cannot get back above neutral.
- Initial support 11,520 with yesterday’s low at 11,460 now increasingly important in protecting a move back to the key medium term support 11,400.
- Resistance 11,604 which is the bottom of a resistance band between 11,600/11,700.