05-dax-m5-chart

Dax Technical Analysis 06/10/2016

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Good morning traders!

The 10650 is under threat at the moment, as I type this article, which held price on Tuesday. I have just had another look and we have dropped 30 points in a matter of minutes, perhaps a rejection or perhaps it’s just building up a head of steam in order to take that level out. 10700 is the key level above, so I suspect we will see a test of that on a break above 10650. A failure to break 10650 can see a rejection sell off.

In the short-term we are bullish above 10485 and still sitting above the 34 hour EMA (visible on the 30 minute chart).

Gold is the interesting market at the moment, because of its aggressive sell off. Many traders are looking to target 1250 and if that’s the case, equity markets like the Dax may continue to rally. There is some divergence on Gold at the moment (bullish) perhaps suggesting that support is near. My first thought is that someone is looking to drive the price of Gold down so they can buy tons of it, perhaps because the value is set to rise sharply again in the near future. We shall see.

China (Donald Trump’s favourite country) is still causing a few concerns on a wider economic scale as many analysts are expecting another financial crisis down the line, but it’s unlikely to be in the next 12 months, let alone the next 12 days, so I doubt that will be the catalyst for a reversal right now.

On the daily chart we have trend line resistance above around this 10680-10700 level. The trend line began May 2015 and has around 6 touches already, suggesting the resistance is going to be very strong, so this may provide bears with a great opportunity to swing short. So I am going to be patient and wait for a reaction.

On the H4 chart, we have a pin bar developing at a previous high, watch out for how that closes

On the m5 chart we can see the breakout yesterday from the bearish trend channel around the daily pivot, this led to a decent bullish move. Since then we have seen bearish divergence with the second peak being this morning around the high of Tuesday and now we see a sell-off. Watch a reaction to the daily pivot.

Dax Support & Resistance

KEY LEVELS
Daily R210710
Daily R110656
Daily Pivot10570
Daily S110516
Daily S210430
200 Day EMA10244

Dax Charts

04-dax-m30-chart
04-dax-m30-chart
03-h1-dax-chart
03-h1-dax-chart
01-dax-daily-chart
01-dax-daily-chart
02-dax-h4-chart
02-dax-h4-chart
05-dax-m5-chart
05-dax-m5-chart