DAX futures analysis 25/07/2017

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

 

Rallies on DAX futures are now a chance to sell.

Having broken below the support at 12,303 there is now a source of overhead supply that will be looking to sell into strength.

  • Initially that would be between 12,303/12,374 but the old uptrend now comes in as added resistance at 12,389 today.

An early morning rebound today already looks to once more be failing and the sellers remain in control.

Momentum is negative across the board on the daily chart and the hourly chart simply reflects a market that is looking to unwind to renew downside potential.

  • The initial resistance is a near term high at 12,250.
  • Expect a retest of yesterday’s low at 12,133, whilst there is further support around 12,100 and the medium term two month top still implies 12,030.

 

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