DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
The failure of the breakout support and subsequent negative signals suggests that the corrective pressure is mounting.
During the early part of the week , the market had been set with consolidation and the concern that the breakout could be lost.
Yesterday’s sharp bear candle yesterday has begun the process of a retracement now as the choppy ranging moves of the past couple of months appear once more to be playing out.
The daily RSI has again peaked around 60 whilst the MACD lines have lost impetus and the Stochastics have posted a bear cross.
In a market that has so much form in false signals and ranging, this suggests that a top has been posted at 13,422 and that intraday rallies will struggle before the sellers resume control.
The early rebound today has failed just under 13,300 and the resistance at 13,336 is building now and rallies look to be a near term chance to sell.
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