Last updated: September 4th, 2017 at 10:13 am
DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
A huge bear candle has completed a two month top.
The big bearish engulfing candle posted yesterday has closed decisively below the support of the mid-May low at 12,487 to complete a breakdown and imply around 460 ticks of correction in the coming weeks.
The concern is the corrective outlook forming on the momentum indicators, with the MACD lines accelerating towards negative configuration and the Stochastics at a two month low, whilst the RSI is at a contract low.
Rallies will now be seen as a chance to sell.
The hourly chart shows an unwinding move on the hourly RSI towards 50/60 should now be viewed as a selling opportunity for the correction.
At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.