03 H4 Dax Chart

Dax Technical Analysis 08/02/2016

[warning]Major lows being tested, strong bearish trend[/warning] [wp_ad_camp_1]

Good morning traders!

There will be less high profile event risk this week which could mean one of two things; it might cool the market down and take the heat out of the volatility we’ve experienced recently, or take out the momentum from any of the trends we’ve experienced. Alternatively it could continue to develop trends, not necessarily volatility, but allow trends to continue.

Many traders have been waiting for the release of NFP in order to place their positions. Now the reading has under delivered, this will The Friday closeenable traders to continue to trade their position.

Daily Chart

The Friday close was particularly significant because it continued the bearish momentum from the Thursday and closed once again at a new low and as I write this article prices are now diving towards a new major low. 9000 looks to be in sight this week. 

H4 Chart

We are in the process of creating a bearish hammer candle on the four hour chart and momentum is clearly bearish. We are about to break below major lows so I would be waiting for a pullback before entering the short.we have moved back off the lower Bollinger band so there is room to go further down.

m30 Chart

Are berries trendline has developed which can be identified using the fractals and prices currently respecting it offering short traders sell zone to enter a trade. A break below 9225 could open up a move towards 9000 but bearish traders will likely enter on a pullback A break below 9225 could open up a move towards 9000 but bearish traders will enter on a pullback because there will be multiple stop losses down there.

m5 Chart

We gapped up on open this morning, touching the daily pivot, we then created barest divergence before moving lower we then created bearish divergence before moving lower. Right now 9225 has just been taken out and price is about to test 9200. The first targets for many will be 9159, but as I missed the opportunity to short I am interested to see the reaction at 9240 on a pullback.

Dax Support & Resistance

Daily R29561
Daily R19405
Daily Pivot9315
Daily S19159
Daily S29069
200 Day EMA10453

Dax Charts

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