DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The bulls continue to struggle for traction as once more the market has pulled lower from the near term pivot.
This is driving a drift lower on the momentum indicators with the daily MACD lines continuing to decline and the Stochastics below 40 and falling to levels not seen for five weeks.
However, there is still a feeling that this remains a pullback to be bought into.
The near term corrective moves have continued to build support around old breakouts and this is still in play for the DAX.
- The recent lows 12,491 and 12,538 coincide with the old breakouts at 12,411 and then 12,518 which are the basis of support.
Subsequently today’s early weakness is likely to once more begin to find support for a retest of the 12,666 pivot and ultimately above.
The hourly chart shows the market is in drift mode with consolidation on the hourly momentum however there is nothing overly concerning about the decline today whilst the supports are intact.
- Resistance remains 12,666 on a closing basis with 12,709 intraday.