29-01-2018 Dax Technical Analysis

Good morning traders. I have uploaded a video from the Premium webinar this morning and the view for the DAX was that we wanted a pullback into one of the two buying zones, assuming that the trend will continue to follow the major swings. We looked at the bullish and the bearish ideas, so have a look at which one you prefer and keep an eye on the setups develop.

For the Bulls

The DAX has recently completed a two-wave retracement from the recent all-time high. The two waves were very similar in length and could be considered as two minor reaction legs (two minors can often make one major). Therefore if we have printed a major reaction leg, then this could be the turning point to continue the bullish trend. In other words, if we get a test of these lows, then it may be an excellent opportunity to buy low with a good reward to risk ratio.

We marked out these two zones for longs during the webinar. If this first zone holds, then it called price very well.

For the Bears

This chart is a sample from the 60-minute chart posted lower down in the article. This sample shows a bearish setup given the buyer weakness following the recent second leg lower. We also have the formation of an outside bar. So if price retraces at least half of that candle, it may provide an interesting entry to short. We have yet to reach ‘Balance’ on the overall expanding pivots play, so the longer target could well be that, however this idea is targeting the area where buyers most recently showed their hand.

 

29-01-2018 Dax Video

29-01-2018 Dax Levels

KEY LEVELS
POC *13334
Value Area High *13341
Value Area Low *13302
14 Day ATR147.39
200 EMA12673
Daily R213474
Daily R113431
Daily Pivot13348
Daily S113306
Daily S213223
*These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices

29-01-2018 Dax Charts

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