07 m1 Dax Chart

Dax Technical Analysis 05/10/2015

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Good morning traders!

Another fed rate hike discussion began on Friday after a disappointing NFP print. Many analysts have been supporting the view that September would be the month for lift-off, then December, but now it seems they are beginning to doubt it happening until next year. Would this be enough to provide a market rally, be it temporary?

I think the potential crisis in the emerging markets and subsequent knock on effects will certainly provide a continued bearish catalyst in the medium term, but yet on the other hand we have the Euro area back in deflation territory so the pressure is on the ECB to do more. We have been in a period of reduced QE because of the front-loading before summer, so levels will start to ramp back up again anyway, oil has also been a contributing factor in the lack of inflation growth. So you could argue that there is a bit of stalemate with the fundamentals especially as the technicals on the Dax are moving sideways.

The weekly chart shows the formation of a pin candle, which when coupled with a technical bounce from long-standing support, makes me believe there is opportunity for a bounce from current levels. The only thing stopping me trading it right now is that we have pierced the 9400 zone three times recently, with last week posting a new low, so I don’t want this to turn into a bull trap. A speculator might like the risk:reward setup here.

The daily chart shows a different story, we are approaching the underside of the pitch fork support and may find resistance here offering an opportunity to short. If you look at the fibonacci retracement levels from the september high/low (I haven’t drawn them on these charts), you could target 9912 if we break through the support from the underside.

The 4-hour chart shows we are back inside the regression channel but moving sideways, nothing interesting. The H1 chart shows some choppy alligator lines, no signals available here. The 30 minute chart shows the range we are trapped in very clearly. The pivot levels on the 5 minute chart are really stretched and mainly because of the volatility from Friday’s trading session. Congratulations to anyone who traded well on Friday on the Dax. I traded gold and did well, but did nothing on the Dax.

There is no much happening on the economic calendar this week, except if you have GBP trades on (like me).

Dax Support & Resistance

KEY LEVELS
Daily R29873
Daily R19776
Daily Pivot9584
Daily S19487
Daily S29295
200 Day SMA10693

Dax RSI Indicator Chart

If you had set your RSI indicator or the DaxTrade RSI EA software to RSI14 with 70 30 levels on a 5 minute chart on Friday, with 75 point stop loss and 200 point profit target, you would have won your first three trades of the day and two would currently be open. A good day! See RSI chart below.

To find out more about the DAX RSI indicator or the DaxTradeRSI EA software, please click the links above under trading systems.

Dax RSI Indicator Charts
Dax RSI Indicator Charts

Dax Trades

I will be honest and say I have not been very proactive in managing these trades, because I could have gained a decent profit on Friday but chose to keep them going. I am happy to sit on for a lot longer now.

Dax RSI Indicator Chart
Dax RSI Indicator Chart
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Dax Charts

07 m1 Dax Chart
07 m1 Dax Chart
06 m5 Dax Chart
06 m5 Dax Chart
05 m30 Dax Chart
05 m30 Dax Chart
04 H1 Dax Chart
04 H1 Dax Chart
03 H4 Dax Chart
03 H4 Dax Chart
02 Daily Dax Chart
02 Daily Dax Chart
01 Weekly Dax Chart
01 Weekly Dax Chart

1 thought on “Dax Technical Analysis 05/10/2015

  1. 6/10

    Well the powerful daily candle of Friday had some follow through and we went through previous resistance at 9781. This should now provide some support. This is also the neck line of the inverted H&S pattern which if successful will take us to 10235 at 100% extension. Of course this could be yet another fake out. The weekly chart is still countertrend bearish. The futures having gapped down this morning it will be interesting to see what price does around 9750 where the 200 EMA sits on the hourly chart (currently forming a sell candle above this 200EMA.

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