Dax Technical Analysis 07/01/2016

Good morning traders!

Well it looks like I may have missed most of the opportunities this morning after we had a massive gap lower, in fact I think most of the stock markets have had a similar reaction. The Chinese Central bank have contributed to this by devaluing their currency, again. This pulled the Chinese stock market down and triggered other moves elsewhere.

I’ll take this chance to say hello to some new friends, Jamie, Jeremy and Wayne, who are going to be my new local trading colleagues and together we will be building and bringing an exciting community trading platform to share with all of you guys. I hope to have some of you come along and try the service when it’s ready? #bopdrop

So yesterday many indicators and strategies we confirming the bearish bias, the signals were to sell and for those who stuck to that strategy could have done quite well. It remained under pressure pretty much all day and those who left their shorts open overnight, something I am reluctant to do at the moment, would be in a great position.

On the daily chart, we are currently watching 5 consecutive daily bearish candle setup and targets to the downside seem to be around the 9600 level, or perhaps a retest of the 9300 major low. If you pull a fib extension from Oct low to Dec high and then the mid Jan low, you will find a 100% extension around 9563, I think many traders will be using these levels.

Volume Profile

Here is an indicator that I haven’t used for a while, the volume profile indicator. The green profiles are individual daily profiles, but the grey one shows a composite profile for two days and you will notice a large low/zero volume pocket based on the gap open this morning. I like the idea of that gap filling and then selling from towards the top of the gap.

It all just depends on whether we get there or not.

08 Volume Profile
08 Volume Profile

Dax Support & Resistance

KEY LEVELS
Daily R210440
Daily R110309
Daily Pivot10201
Daily S110070
Daily S29962
200 Day SMA10667

Dax Charts

06 m5 Dax Chart
06 m5 Dax Chart
05 m30 Dax Chart
05 m30 Dax Chart
03 H4 Dax Chart
03 H4 Dax Chart
02 Daily Dax Chart
02 Daily Dax Chart

 

 

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