The Dax is now on approximately a 1000 point rally and seems to be targeting the All-Time High and the 13,000 handle. The rally on Friday was particularly strong, however, we have continued the momentum this morning with another gap. The progress is relentless.
The Spanish/Catalan saga has not caused any concerns to the market, which is not surprising if you consider that the risk of nuclear war has not dampened risk sentiment. Despite the situation being increasingly concerning from a humanitarian standpoint, it’s unlikely to cause many problems to traders of the Dax.
So today a retracement back to the daily pivot would be interesting because it would close the gap and challenge the consolidation area from late on Friday evening. This level is around the 12800 zone.
Regarding trends, the big picture remains the same. The daily chart fork shows that we are trading in the highest quartile, about to test the upper median line parallel, but yet to mark out a significant swing high. The hourly chart shows the minor swings are still trending and the 20 minute shows the trajectory of the trend becoming almost vertical. Exhaustion exhibits a similar behaviour, accelerating towards the end of a move. Let’s see whether this is exhaustion or just strong momentum.
Today if we get an opportunity to buy, it would be interesting. Somewhere close to the daily pivot, or the POC from Friday.
|Value Area High (Futures)||12783|
|Value Area Low (Futures)||12710|
|14 Day ATR||80.34|
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Dax & FDAX Technical Analysis 02-10-2017
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