Dax Technical Analysis 06/09/2017

Dax Outlook

The trend-defining level is currently the high from yesterday, which is now around 12210 on futures. We are currently maintaining a bearish bias below this level but price action is ranging and becoming increasingly choppy. It’s very easy to chase a trade that isn’t there and be caught on the wrong side for 50-100 points, so orders may be a better option.

Interesting selling zone: 12180-200

Interesting buying zone: 12045-065

Dax Charts

Daily chart (bottom left) – this shows a pretty clear bearish channel with price trading inside the gap opened in May. We are also inside the 8 EMA envelope (8 EMA high and 8 EMA low), suggesting ranging price action.

240-minute chart (centre) – we have a bearish centre line just below the ‘battle zone’ that is keeping the price in a current short term trend. The current trend defining level can be seen as the most recent high. If we remain below this centre line, we would expect the price to test the lows at some point. If we break significantly above it and through the battle zone, then this suggests strength and points to a reversal.

2500 tick chart (top right) – this pitchfork started off well with a strong A B and C, the price then reacted to the median line (circle), but has since turned very ugly and choppy. It’s not easy trading in those conditions, so patience is probably the best move.

2000 tick chart (bottom right) – there is a potential trade setup there which will be discussed in the Journal.


The Indices

These prices are not futures, they are FXCM


Market Profiles

Many low volume nodes left behind yesterday, in between each of the high volume nodes. There was a definite scattering of ‘value areas’ yesterday. We attempted to test the first one (represented by the high volume node around 12120) this morning, but were pushed back. If we manage to get past it and hold a pullback, perhaps the POC is the next target.


Crypto Portfolio

All time high on the balance

Further progress made on cryptos, in fact it seems it’s ‘China who?’ regarding their ICO ban. I think the market was kind of expecting something, consider their exponential rise and lack of regulatory supervision. It was simply a matter of time. I personally believe it’s just a way of buying time for China to realise WTF is going on with this market.

Anyway, back to business as usual. No changes were made to the portfolio, but the portfolio has grown nicely thanks to a bounce from IOTA and Ripple. I added more LiteCoin to my hardware wallet recently too, call it my pension pot.

Balance: $516 (Initial investment: $125, all time highs: $516)