01-dax-daily-chart

Dax Technical Analysis 04/10/2016

Hello traders!

It is difficult to have an opinion on direction at the moment because of how strong the market moved on Friday because we broke above 10 550 and my first thoughts were that we are now about to test 10 700.

We posted a bullish engulfing candle on the daily chart after making a lower low and piercing the daily 200 EMA to leave ourselves stretched long. The signal to buy came from many opportunities such as the bullish divergence visible on the m30 and m5 charts, the bullish engulfing candle on the H4 the reverse (inverse) head and shoulders pattern visible on the previous 5minute chart.

We now seem to be finding our feet and digesting some of the gains. The mini move higher that happened this morning has corrected 61.8% and is now moving sideways in between the daily pivot and the daily R1.

BULLS

Looking to buy a dip from 10400

Looking to buy a break off 10600+

Short-term bullish above 10485

BEARS

Interested in shorting current levels, but better price to short nearer to 10700

Possible setup with stop just above recent high.

Dax Support & Resistance

KEY LEVELS
Daily R210791
Daily R110660
Daily Pivot10421
Daily S110290
Daily S210051
200 Day EMA10239