DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The near term outlook remains choppy on the DAX.
The rally late last week has been unable to overcome the underside resistance of the old six week uptrend and the opening move lower today adds to the uncertainty of the outlook.
Momentum is falling away over the medium term which is a concern for the bulls and if this continues it would suggests that this four week consolidation is a struggle and could ultimately break to the downside.
The hourly chart shows a big move lower on the open today which has left a gap at 12,105.
However there is resistance between 12,030/12,050 that could limit the recovery today, which if continues will add downside pressure.
The sell signals on hourly Stochastics and MACD lines are near term negative.
- A close back below 11,950 puts pressure on 11,878 key near term support.
- Today’s high at 12,034 is resistance.