DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
The sellers seem to be in control of DAX futures as another session starts in negative fashion.
As 2017 ended on a sour note for the DAX, the new year has continued in the same vein.
Two strong bear candles took the DAX clear of the previous mid-range support at 13,000 last week and the market is increasingly shaping up for pressure on the key support at 12,810.
Last Friday there was a test of the support which was initially repelled, however the sellers have returned again today intent to continue the test. Momentum indicators on the daily chart show the bears in control within the range as the RSI drops below 40, MACD lines are ready to fall back below neutral and the Stochastics are negatively configured.
On the hourly chart the outlook is corrective, with the hourly RSI failing at 60 and hourly MACD lines failing under neutral.
This shows the market is selling into strength.
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