DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The market has opened lower today and the outlook for an immediate breakout to new high ground looks unlikely.
The question is now whether this will turn into profit taking.
The recent uptrend of the past 12 days has been broken, however the early decline seems to have been contained, for now.
The momentum indicators are showing a mild deterioration and nothing is yet confirmed, however if this correction continues then the bulls will certainly begin to get twitchy.
The support to watch now is at 12,666 which was last week’s low, below which would form a small top pattern.
So far today’s low at 12,693 has not tested the support, but the move is merely unwinding back to the underside of the downtrend which is resistance, whilst the gap down from 12,772 has all but been filled.
The hourly chart shows a deterioration in the outlook which again has not turned corrective yet, however if the market begins to drop away again as the morning develops then the pressure will grow for a correction.
- Below 12,666 implies 175 ticks of downside which would bring in the support band 12,411/12,518.
- Immediate support is 12,693.
- Resistance is yesterday’s low at 12,772 with 12,843 increasingly bolstered as resistance of the all-time high.