DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
Once more the buyers have failed to hold on to a near term bull move and questions are beginning to mount over the longevity of what is now a two month uptrend.
The daily chart shows a failed bull candle yesterday followed by early losses in today’s session.
If this early move lower today translates into a bear close and potential further decline tomorrow, then the stability of the uptrend will be called into question.
Already the momentum indicators are beginning to show signs of strain with the MACD lines falling back again and the Stochastics falling at a three week low.
- The support initially comes in at today’s early low at 12,692 whilst last week’s low is 12,665, with key near term support at 12,610 is a key near to medium term support now.
- Failing at yesterday’s high at 12,835 leaves a key near term resistance in place whilst 12,780 is now initial resistance today.
The hourly chart shows mixed and uncertain near term momentum, whilst today’s trading could be key for direction, especially if the 12,665 support is breached.