DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
Once more the rally has been decisively sold into as another break to multi month lows has been seen.
The selling pressure of the overhead supply around the old Jun/July lows did for the bulls and this has strengthened resistance in the 12,300/12,400 band.
Momentum indicators continue to deteriorated and become increasingly negative with the RSI failing at lower levels and now the MACD lines accelerating lower again.
A close under Monday’s low of 12,133 will continue the downside move towards the 12,030 implied target from the May/June top.
- The next real support though now comes in at 11,965.
Rallies remain a chance to sell and with hourly momentum negatively configured any intraday rallies are an opportunity.
- There is resistance from yesterday’s rally into the close which has left a minor reaction high at 12,194 whilst there is also a small downtrend channel to sell into today, the high of which comes in around 12,190.