10-01-2018 Dax Technical Analysis

Good morning traders.

I have been reading some of the headlines from Germany and found that the German state revenue from income tax has increased by about 50 percent since 2010. This is due to the good economy and the diligence of the local employees. But the SPD wants more and demanded an increase in the top tax rate from 42 to 45 percent.

I also read that Jamie Dimon has performed a U-turn. “I regret to have made these statements,” and this was about Bitcoin, the world’s first virtual currency that Dimon had recently called a “fraud.” He once said something like he would fire staff using Bitcoin in seconds. The turnaround of the JP-Morgan boss is not due to new insights, but the hope of big profits. The bitcoin price rose in 2017 by about 1,500 percent. Dimon went blank. The learning curve of a banker has always run parallel to the profit curves of the speculators.

10-01-2018 Dax Analysis

The expanding pivot setup is still the most obvious play at the moment. Many traders are looking at the current price action as an unfair high and are waiting for a retracement back to some form of balance. The current high allows an excellent reward to risk setup. We discussed this setup in a bit of detail in the article yesterday. This morning we had a gap lower, and it was one of the first gaps lower that we have seen for a while.

We are trading around 13340 at the moment, so targets to the downside are probably 13300, 13250 and 13180.

One observation that you can make is on the 240minute chart below; this chart shows the bullish fork. In particular, you can see that the Median Line has not yet been tested/touched from above, so perhaps this bearish action plays into that idea. So keep an eye open and watch for that.

10-01-2018 Dax Levels

POC *13394
Value Area High *13399
Value Area Low *13376
14 Day ATR134.24
200 EMA12582
Daily R213461
Daily R113424
Daily Pivot13391
Daily S113354
Daily S213320
*These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices

10-01-2018 Dax Charts