DAX futures analysis 24/07/2017

DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)

 

A huge downside break has put the bears firmly in control now.

The support of the June low at 12,303 was blown out of the water by Friday’s sharp bear candle to take the DAX futures to a  new 13 week low.

It also continues the corrective move lower in the wake of the two month top pattern that implies a target of 12,030.

The move has broken the uptrend since February and the concern is that momentum indicators are increasingly negatively configured.

The MACD lines crossing lower below neutral is a worrying medium term development for the bulls, whilst the RSI is pushing back towards 30 and the Stochastics are also in decline.

  • Rallies are now a chance to sell, with a near term resistance band from the recent lows between 12,303/12,374 a “sell zone”.
  • The hourly chart shows the market falling away again today with the late rebound high of 12,250 now initial resistance.
  • There is little real support of note until the key April low of 11,975 whilst 12,100 would also be a level to watch.

 

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