Dax Technical Analysis 09/02/2017

Good morning traders!

And all of a sudden we are back inside that familiar range again. How did that happen?

The Dax is not a very interesting market to trade at the moment, it’s already made its moves and now it seems to be happy trading sideways, although it may be because it’s not doing what I am expecting it to do. But having said that, there is a very interesting candle that has just formed on the hourly chart, this candle is bearish and formed around a level of resistance. It’s going against my natural instinct to buy the market, as I still feel there is value, but I suppose it supports the view that there is a better-priced zone to buy from.

Regarding my personal trading, forex is the majority of my activity at the moment simply because my subscribers are asking for stop losses of 20-25 points and those kinds of trades are just getting chopped to pieces using my current algorithm settings. So I am redesigning the settings to suit that type of trade.

Dax Technical Analysis

Longer term bullish above 11400 with a decline to 11430 being and interesting spot to buy for me personally. A short setup exists from current levels with a stop above the daily high.

01 Dax Daily Chart
01 Dax Daily Chart

The hourly chart is providing the most compelling signal at the moment, with a price rejection around 11625, the candle is pretty bearish and allows bears to sell with a stop loss above the high. The targets are not so easy to find, with plenty of intra-day support below, but it seems to the most popular play at the moment.

03 H1 Dax Chart
03 H1 Dax Chart

We pierced the daily R1 (pivot point indicator) this morning and were rejected, printing a rejection candle. We are now heading towards the daily pivot testing the 50 hour EMA for a balance point and some kind of support.

05 Dax m5 Chart
05 Dax m5 Chart

Dax Support & Resistance

KEY LEVELS
Daily R211653
Daily R111603
Daily Pivot11541
Daily S111491
Daily S211428
200 Day EMA10797
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