We expect a slow day and price is continuing to consolidate from the previous moves. We are likely coiling up for another move soon. See the TPO chart below to see how price is fitting inside the previous days.
Yesterday, instead of trading the DAX I bought Oil and EuroStoxx, which are recorded here (half way down the page), and I posted these in the DaxTrader chat room. The trigger for the trades was based on my indicator sending me a Wide Range Outside Bar signal and it was following my Monday and Wednesday analysis.
What Shall I watch Out For On The DAX?
DAX remains bearish below 12650
During the webinar this morning (normally the Friday Webinar, but I held it today instead) I discussed this an option below. I didn’t take the trade, but for those who did, it has now been moved to B/Even. The idea is a retracement back towards the median line. If this breaks higher, then a b/e trade is fine.
We are currently coiling up on the TPO, with today forming the second consecutive inside day. Watch this one for a break. The direction is unknown at this stage. My preference is long, because I am normally bullish but picking a side would be guessing.
I would rather wait for a break, then see a pullback. If we hold the pullback, we can perhaps trade in that direction.
Will this Channel Hold?
It’s a slow grinding channel that began after peeling away from the top yesterday. If it breaks higher and it is not a fake move, maybe a test of the breakout level could offer a buying opportunity.
With the daily range around 230 points, we can reasonably expect the DAX to remain within this range. Prices are trending lower, so mark out the pivots and trade for lower lows and lower highs until it reverses.