DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
The market continues to consolidate Wednesday’s upside break, and is now forming a neutral technical outlook.
A sharp break back above the 12,487 neckline of the two month top has improved the outlook but needs to break above 12,730 to abort the corrective outlook.
Hence there is a somewhat neutral technical outlook forming near term.
The rally has just lost impetus with a mildly negative candle with the RSI beginning to settle around the low 50s.
- The hourly chart shows the market needs to hold 12,605 support otherwise a small top completes and implies c. 70 ticks of decline.
- Yesterday’s high at 12,672 is initial resistance.
- I am not rather neutral between 12,487/12,730.