Welcome to the 12-10-2017 Dax Technical Analysis. When you look at the price action for the last 6 days, you would struggle to believe that we have posted five bearish days in that period. Five out of six days have closed at lower prices than it opened. Yet we are trading sideways. We are in a pressure cooker and pressure is building. Pressure pressure pressure, pop! So at some point soon, this one is going to give way.
Yesterday we made a mockery of the deviation bands and pierced both the deviation high and the deviation low without making any significant progress in either direction. The trading session was almost perfectly split into two distinct parts; the first half spent below vwap and the second half spent above it. In summary, we are pretty much back where we started the day.
In the premium channel, the majority of the group are continuing on from the Tuesday trade idea, which was a short from around 12975, targetting around 895. However, there is now some strong support forming at the 930 level and price seems to now be looking to test the highs again. That 930 level has rejected price a few times already now.
12-10-2017 Dax Outlook
For today, let’s assume a daily price movement range of between 80-120 points, which is a little above the current 14-day average true range. Intra-day
We remain bullish above 12892, with opportunities to buy at support of 936. It’s best to remain cautious as the major swing high could be near to current levels, so we should be flexible and not afraid to fade if the opportunity presents itself. We are looking for price action to ‘wash’ the highs and take out some stops that are hidden just above 13,000.
Buying at 936 and 900, alternatively patiently waiting for a wider retracement.
Buying at 930 and selling at 980
Selling at current levels, perhaps 995
12-10-2017 Dax Key Levels
|Value Area High (Futures)||12961|
|Value Area Low (Futures)||12942|
|14 Day ATR||72.82|
|*Please be aware that FXCM can often be 5-10 points higher than futures prices|
12-10-2017 Dax Charts