DAX FUTURES ANALYSIS 30/06/2017
A huge bear candle has completed a two month top.
The big bearish engulfing candle posted yesterday has closed decisively below the support of the mid-May low at 12,487 to complete a breakdown and imply around 460 ticks of correction in the coming weeks.
This suggests a downside target of 12,030 and perhaps a retreat towards the April key low just under 12,000 at 11,965.
The concern is the corrective outlook forming on the momentum indicators, with the MACD lines accelerating towards negative configuration and the Stochastics at a two month low, whilst the RSI is at a contract low.
Rallies will now be seen as a chance to sell.
The bull response to a huge bear candle can often be for a retracement but there is now an overhead supply coming in around 12,426/12,487.
The hourly chart shows an unwinding move on the hourly RSI towards 50/60 should now be viewed as a selling opportunity for the correction.