DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
The mixed outlook continues on the DAX, but the bulls are now finding themselves under increasing pressure to hang on to a positive outlook.
Within this the support at 13,125 remains key, but the bulls will be heartened this morning that early weakness has been bought into around the old support band 13,125/13,200.
However the momentum indicators are creaking now, with the RSI hanging on to 50 and the MACD lines threatening to cross lower.
What could also be key is that the opening gap lower has now been filled at yesterday’s low, however if the market closes below this gap at 13,267 today then the positive outlook will be slipping.
This could then begin to shift the emphasis away from buying into weakness.
The hourly chart shows the hourly RSI failing at 60 and MACD lines under neutral suggesting deteriorating momentum.
A downtrend has also formed in recent days as intraday rallies are being sold into.
- The near term importance of the support at 13,125 is significant as a breach would really begin to reflect a stark deterioration in the outlook.
- Resistance is at 13,352 and then 13,385 is key near term.