04/01/2018 Dax Technical Analysis

Hello, traders and welcome to the 04/01/2018 Dax Technical Analysis.

The idea that I posted at the beginning of the week still seems to be playing out quite well so far. You can see the chart above, and the idea was based on a confluence of levels from different line sets. Check out that article to see the rationale behind it.

We are currently back at the balance point, trading just under 13100 and this zone will interest many sellers. I am aware of quite a few bearish ideas from the Premium channel, as we have some bearish traders in there. One of the ideas is below.

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Read up on “Germany’s closely watched “debt clock” is running backward.” which is available on the financial times.

The clock, which despite its name is more of a counter, was reprogrammed on January 1 to take account of new federal and state level budget plans. It is now ticking down at a rate of €78 per second, the first time it has shown the nation’s overall public debt in decline. In 2009, in the wake of the financial crisis, it showed Germany’s debt increasing at a rate of more than €4,400 a second.

Until this week, its bright-red digits offered a cautionary reminder of Germany’s deteriorating fiscal position: since June 1995, when the clock was set up, per capita debt has risen from €12,830 to its current level of €23,827.

 

04/01/2018 Dax Levels

KEY LEVELS
POC *12934
Value Area High *12986
Value Area Low *12894
14 Day ATR144.13
200 EMA12549
Daily R213110
Daily R113061
Daily Pivot12974
Daily S112925
Daily S212839
*These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices

04/01/2018 Dax Charts

Bearish Idea

We have a pitchfork from three major pivots, and we are currently seeing a bullish reaction leg. If we reach the upper median line parallel, this could offer a nice spot to short.

04/01/2018 Dax_Chart_2

Dax Back To Balance

We can see that price action has traveled from the Pivot to the Extension target and then bounced back to the Balance Point.
04/01/2018 Dax_Chart_3

Dax Pressure Cooker Idea

You can see the press here, under the pressure arrows, which was then zoomed. But unfortunately, there was no retest.

04/01/2018 Dax_Chart_4

One thought on “04/01/2018 Dax Technical Analysis”

  1. paul@carusouk.com

    Great balanced analysis again. I like the bearish fork set-up although spiking the upper line into the 200/240 zone would be typical Dax so will scale in with stops above 240. Happy to buy dips below 13000 in the meantime today against the daily S1 for an NFP fuelled bullish thrust into the above zone tomorrow maybe

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