Good morning traders and welcome to the 30-10-2017 Dax Technical Analysis. First things first, tomorrow is German Reformation day and this means a public holiday and the Dax will not be open for trading. Therefore there will be no article tomorrow. What a great week for the Dax last week, well, for some anyway. We … Read more by clicking here
The Dax is currently bearish according to the recent daily fractal, so let’s consider that. A swing-trade short from current levels doesn’t provide an excellent reward to risk ratio, unless a trader wanted to target 12100, with a stop loss of 12900. Otherwise, an alternative option is shorting with a stop loss above 12700, looking to target 12450.
Regarding the technical indicators, we are above the daily 200 EMA but below the most recent daily fractal, so the signals are suggesting we should look at the lower timeframes for guidance. On the 5 minute chart we are above the parabolic SAR, but my current moving average cross indicator is pointing to the downside, so again, conflicting indicators. Overall, I am bullish longer term but I am neutral short term.
The hourly chart showed bearish divergence, go and check that out on your own chart, however the 15 minute chart suggests a potential break out setup. We are currently trapped between those two horizontal levels (12485 – 12650). A break above 12650 can open up a move much higher and a break below 12485 can have the opposite effect.
The triple top on the hourly chart is compelling and will likely prove to be a new major resistance level. If price is seeking out the next major support level, we should look towards 12375, keeping in mind that there will be some traffic between 12400-12500. The short term down trend will continue if we take out
On the 15m chart, the short term down trend will continue if we take out 12500 and will end if we take out 12650, so keep an eye out for those levels and the support and resistance levels below.