DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
Having broken out above 12,487 the market has spent the past few sessions consolidating.
- The market is playing into a more neutral configuration now between the support at 12,487 and resistance at 12,730.
This comes with the last two completed candles which have shown mild negative sessions and the buying intent leaking away.
Momentum is in recovery mode but is also tailing off now with the RSI now holding around the low 50s and the Stochastics losing impetus.
It is interesting to see the hourly indicators are dropping away again this morning as the initial gains have been unwound.
Watch for the hourly RSI dropping below 45 to be a negative signal and if the hourly MACD lines go negative.
- Thursday’s high at 12,672 seems to be limiting the bulls initially on the early bounce today.
- There is a low in place at 12,567 which is now an important near term level to maintain the improvement above 12,487.