30-01-2018 Technical Analysis

Good morning traders. The bears are still in control at the moment and after a small to moderate sell-off yesterday, we have already seen a 74 point gap today. We admit that the bullish outlook is looking frail and appreciate that it is rarely wise to marry a bias or hold on to an idea for too long, however, the major trend defining level of 12736 still stands.

For those believing that 14,000 is still possible and believe that the current bullish trend (albeit under pressure) will continue, can get a swing entry from current levels and earn around 6:1 on their money. This assumes that the 13131 is strong enough support and will not be broken on the way to the target.


DAX Daily Chart

If you draw a modified schiff from the three most recent confirmed pivots, you will see how the median line trajectory is still holding price. This is an encouraging sign for bulls, but the 13131 level is important to hold. See this animated gif below showing how to draw the lines.

View post on imgur.com

30-01-2018 DAX 60m Chart

The trend on this particular chart favours the bears – the trend defining level is 13390. The chart remains bearish below that level.

Can you see the outside bar that formed yesterday on the hourly chart? It was a wide-range bar, printing higher and lower than the previous candle. This particular outside bar was a good indication of weakness. As the market pulled back and retraced up the candle, it offered traders another opportunity to short (inside the sell zone 13350-13377) to reach the target area (13197-13233). These two zones may, once again, prove to be interesting spots for traders.

It seems that this morning, the lower zone was a good buying spot.

30-01-2018 DAX Key Levels

POC *13324
Value Area High *13351
Value Area Low *13313
14 Day ATR147.84
200 EMA12672
50 EMA13184
Daily R213421
Daily R113365
Daily Pivot13319
Daily S113263
Daily S213217
*These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices

DaxTrader Suggestion Box

Not getting the information that you want? Tell me (as specifically as you can) what information would benefit you

Economic Calendar

Leave a Reply