DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
DAX futures are under pressure as equity markets sentiment around the world has retreated.
The strong bear candle from yesterday broke below support at 12,666 to complete a small top pattern that implies around 175 ticks of downside towards 12,490.
This puts the market back into the support band 12,411/12,518.
The momentum indicators have now started to deteriorate with near term bear signals on MACD and Stochastics lines.
Early moves today suggest a lack of appetite so far for a technical rebound but the breakdown of support at 12,666 now becomes an area of overhead supply.
Hourly momentum has turned corrective and rallies are now seen as a chance to sell.
The hourly RSI between 50/60 would seem to be that opportunity .
- The initial resistance is today’s high at 12,642.
- Support is yesterday’s low of 12,545.