DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
The outlook has improved in the past couple of sessions but the medium term outlook remains negative following the series of key breaches of support in recent weeks.
It is interesting that yesterday’s rally had a look at the 12,303 resistance only to be rebuffed.
This could be a similar move to what we saw in early July at 12,487 which was tested on several occasions before breaking higher only to see the rally fail.
The early move higher today adds to the potential for a repeat.
Subsequently, on a medium term basis look for another lower high below 12,487 with the band of overhead supply between 12,303/12,406 being a sell-zone.
This also comes below the old five month uptrend which is a basis of resistance too.
The momentum indicators are beginning to tick higher on a near term basis reflecting the improvement but a failure of the RSI around 50/60 again would be a selling opportunity.
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