The DAX futures are trading lower on the final trading day of the week. There is no doubt that this has been the most volatile week of this month and the fact is that it is likely that we may continue to see this volatility next week as well.
The DAX futures have crossed below the 50-day SMA on the daily time frame for the first time since November last year. This confirms that the bulls are losing control of the price. Having said this, the price is still trading above the 100 and 200-day SMA which means that overall bull trend is still intact and the current weakness in the market is nothing more than a heathy pull back which traders have been waiting for a long time.
As for the RSI, it is moving to the downside and it is still far from reaching the oversold region. This means we cannot classify that DAX future as oversold. The RSI indicates that there is still a strong possibility that markets will continue to move lower.
The near term support is at13,116 while the resistance is at 13,783.
