DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
Near term rallies continue to be sold into, so it will be interesting to see if this rebound of the past couple of sessions once more hits the buffers.
A sequence of lower highs and lower lows is in place, with medium term momentum configuration negative and suggesting that any move to unwind momentum helps to renew downside potential.
The reaction to this rebound will also be a key indicator of how strong the support of Friday’s low at 11,926 will now be.
Ideally this gap would be filled by the bulls before pushing higher.
The hourly chart shows a sharp unwind of oversold momentum but the first test is the resistance at 12,200 which had been a mid-range pivot of the past couple of week.
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