DAX FUTURES ANALYSIS 22/08/2017
The DAX has jumped again this morning but is this any more than a rebound to sell once more?
Given the strength of the bearish candle that closed well below the old support at 12,077 yesterday the recovery this morning looks to be somewhat of a surprise.
However whilst the nine week downtrend is intact there is little suggestion that the bulls can hang on to the recoveries.
Daily momentum indicators remain negatively configured with the RSI below 50 and MACD lines still stuck well below neutral.
Selling into strength remains the strategy.
- However this near term bounce could gather momentum should the market manage a close back above yesterday’s high at 12,158 which would be a clear positive reaction following yesterday’s sharp down day.
- Watch on the hourly chart old pivot resistance at 12,200 as well which would confirm the improvement.
- There is a pivot around 12,077 that is once more supportive, whilst today’s traded low at 12,105 is also a support to watch initially.
Ultimately, the bulls will continue to struggle whilst the 12,300/12,340 resistance remains intact.