DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The market is now is a key near term phase as a minor rebound has kicked in.
The move below 11,920 did not achieve a closing break, but came as key uptrends have been broken and momentum indicators have deteriorated.
Furthermore, the 21 day moving average which has been a basis of support could now become a basis of resistance (currently 12,002).
The daily chart shows early gains have been pared and it seems that the market is on the brink.
Looking at the hourly chart here is a whole series of old key lows between 11,950/12,050 as an area over overhead supply now, and with the hourly momentum indicators rolling over this morning rallies are likely to be seen as a chance to sell now.
- Initial resistance is 11,977
- Support is initially at 11,908 and a breach would re-open yesterday’s low at 11,878, whilst 11,751 is now the next key low.