DAX FUTURES ANALYSIS 08/08/2017
Another failure around the old key support further questions how strong the bulls are.
- The market has subsequently continued to consolidate between 12,077 and the resistance at 12,340.
Yesterday’s bear candle has undone some of the bull move of Friday but the retreat once more from the resistance suggests that the strategy remains to sell into strength.
There is still room to unwind within a downtrend that links back to the June high, but the overhead supply in the 12,303/12,381 range of old lows remains a sell-zone.
The momentum indicators have picked up in recent days but the bulls need traction in the momentum and that is struggling.
Despite this though there is still a mildly improving outlook across the hourly chart as this range has formed.
- The 12,200 pivot is again supportive, with moving averages beginning to bottom and the momentum configuration is mildly bull biased.
- A close above 12,303 improves the outlook further and would complete a small base pattern, but there still needs a move above 12,381 to really suggest a sustained improvement.
- A close below 12,200 hints at a bear control resuming.