DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
For the first time in three weeks the DAX futures have closed below the support at 12,130.
This now puts the downside pressure on as another uptrend (dating back to early Feb) has been breached.
Looking at daily momentum indicators, the increasingly corrective outlook is reflected in the daily momentum indicators with the RSI now in the low 40s and the lowest level since Donald Trump was elected.
A downtrend is forming now with the trend shown in the hourly chart where the run of lower highs and negative momentum configuration is in place.
Rallies are now a chance to sell.
- As a new downtrend starts to take shape, old support becomes new resistance with a band of resistance now in the range 12,070/12,130.
- Initial support is today’s low at 12,027 before 11,995 and yesterday’s low at 11,980.
- Increasingly the market is shaping up for a correction toward the old key band of support 11,879/11,920.