DAX FUTURES ANALYSIS 17/08/2017
Despite the early dip today, the rebound is now eyeing a test of the key overhead pivot band 12,300/12,340.
This is a confluence of resistance from the old June/July lows but also an eight week downtrend.
Rallies have continually been seen as a chance to sell in the past couple of months and how the bulls react at this resistance could be key for the medium term outlook.
Momentum has improved with the Stochastics sharply higher after the four session rally but the RSI is back to 50 and is at an area where selling pressure tends to resume.
- Failure to break above 12,300/12,340 resistance in the next couple of sessions will see the bulls once more losing confidence.
- The hourly chart shows support of the old pivot around 12,200 and down to Tuesday’s low at 12,148.
This looks to be a crossroads for the DAX now.