09-02-2018 Dax Technical Analysis

Good morning traders. The chart above is an interesting observation on the daily TPO chart. Have a look at the last three days ‘Points of Control’ and you will see that they are all in the 12400-12500 zone. So if we get a revisit to that zone today, it may offer a short opportunity.

Yesterday in the article I wrote about how we were beginning to form two consecutive inside day candles. This double inside-day candle formation normally suggests a coiling and offers an opportunity to catch a momentum trade when it breaks. The break came (to the downside) and we closed at the lowest point since September ’17.

Today I am watching for a break below the recent low to confirm a new lower major swing high. There is a potential reversal area (or target zone) between 11600-11750, but that could be a few days away, it would be unlikely to get there tomorrow.

Inside the Premium Chat room, I sent out a couple of messages (yesterday) suggesting some interesting levels, and this was one of the charts I shared. I put out a disclaimer that we’d already sold off near to the daily price movement range, but suggested that the shaded zone is the sell zone.

BEFORE


AFTER

I also shared this chart, showing on a confluence of levels acting as a target zone. The levels that interested me were the horizontal zone (previous low), the black trend line and the fork median line.

This chart could also be interesting for today. The black trend line could act as support offering a spot to buy, or alternatively, if we zoom through the line and head lower, it could provide a selling spot on a pullback/test from below.

Trade Update

I only scalped the DAX yesterday, there were no positional trades. However, I have taken a Gold long

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