Dax Technical Analysis 03/07/2015

Hello traders!

Not a huge amount to say today. I am not trading the Dax until after the weekend, I will be closing positions down again to leave my weekend exposure to a minimum and I would encourage you all to do the same, unless you want to gamble.

On Monday this week we had a 500+ point candle and we could well see another after the weekend, but I couldn’t tell you the direction it will go. The four hour shows we are right in the middle of the bearish channel, plenty of room to move up or down and stay within the bounds, even if we get another big gap.

If we gap lower and break below the base of support, I would expect us to complete a move to 10685 and find further support there, bounce back and potentially continue moving lower. If we gap higher then I think we can be limited by the trend defining lower-high around 11600ish and then have a pullback before moving higher.

Dax Intra-day Chart (4 hour)
Dax Intra-day Chart (4 hour)

But for today, keep your powder dry, use little leverage, close out some positions for the weekend and good luck trading.

Dax Support & Resistance

Daily R211298
Daily R111208
Daily Pivot11139
Daily S111049
Daily S210980
200 Day EMA10890

My Trades

I have still only managed two trades on the John Anthony signals. I was warned to the fact that there would be fewer signals for the next few days. So I will just continue on.

As for my automatic trader, I actually saw double digits yesterday. I was up over £1000 and saw over 10% return, but I believe I have now had a few big losses and now my equity curve is experiencing a pullback. That’s going to happen. A 10% return in under two months is unrealistic and unsustainable. Successful hedge funds are happy with 30% a year.

Keep up to date with the trades here: https://www.mql5.com/en/signals/113715?p=613v