DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
Another failed attempt to break through the resistance band 12,303/12,340 has put the bulls on the back foot once more.
Despite posting a bullish candle yesterday, the move again failed to close above the old key June low of 12,303 and the subsequent early move lower today reflects the uncertainty of the direction this two week range now has.
Momentum indicators which had been improving are beginning to tail off and given the tendency for the DAX to be selling into strength on these rallies the bulls will be increasing nervous.
- The daily chart shows a band of old June/July lows between 12,303/12,381 as overhead supply, whilst the hourly chart shows the market failing every time moves are seen above 12,300 now.
There is however a mildly positive bias developing on the hourly indicators with the RSI more encouraging and the MACD lines above neutral.
This comes as the market is still trading within a range 12,077/12,340 for the past 13 sessions.
The pivot around 12,200 remains a key near term gauge.
- Initial support is yesterday’s low at 12,174 and a close below there would put the 12,077 support back under pressure again.