Dax Technical Analysis 09/03/2017

Good morning traders!

The dollar is still strong at the moment, helped by the ADP numbers that came out yesterday, which Donald Trump seems to have taken credit for. But all eyes turn to today’s ECB rate decision and press conference. It was a fairly quiet evening from the Asian session last night which completed another relatively uneventful trading session, in terms of volume and volatility. I suspect trading will dry up in the build up to that release, so watch out if you’re holding EUR crosses or Dax trades.

Regarding my personal trading, it was a fairly good day yesterday for the Dax trading algorithm with a couple of small wins:

The Trading Exchange, [08.03.17 07:29] DAYTRADE BUY #GER30 @ 11933.45 | SL:11909.70 | TP:11987.16 | 2017.03.08 07:29 (GMT) | ID 61310293

The Trading Exchange, [08.03.17 09:19] CLOSE DAYTRADE BUY #GER30 @ 11987.45 | PROFIT: 51.51 PIPS | 2017.03.08 09:18 (GMT) | ID 61310293

The Trading Exchange, [08.03.17 10:58] DAYTRADE BUY #GER30 @ 11999.09 | SL:11980.24 | TP:12044.22 | 2017.03.08 10:58 (GMT) | ID 61314888

The Trading Exchange, [08.03.17 11:28] CLOSE DAYTRADE BUY #GER30 @ 11980.10 | PROFIT: -18.15 PIPS | 2017.03.08 11:28 (GMT) | ID 61314888

The Trading Exchange, [08.03.17 11:48] DAYTRADE BUY #GER30 @ 11941.95 | SL:11877.86 | TP:12095.85 | 2017.03.08 11:49 (GMT) | ID 61315466

The Trading Exchange, [08.03.17 13:03] CLOSE DAYTRADE BUY #GER30 @ 11977.85 | PROFIT: 34.21 PIPS | 2017.03.08 13:03 (GMT) | ID 61315466

The Trading Exchange, [08.03.17 15:16] DAYTRADE BUY #GER30 @ 11973.05 | SL:11936.84 | TP:12058.70 | 2017.03.08 15:16 (GMT) | ID 61318706

The Trading Exchange, [08.03.17 16:20] CLOSE DAYTRADE BUY #GER30 @ 11975.85 | PROFIT: 2.67 PIPS | 2017.03.08 16:20 (GMT) | ID 61318706

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Dax Daily Chart

Five consecutive bearish candles now, all of which fit inside the previous bullish candle, is this a type of compression or ‘spring-loaded’ set up where price is coiling into some kind of potentially explosive move, like what happens when your press down on a spring?

We are actually working on our sixth consecutive candle today and we have not even reached the 11875 level yet. In fact, we have not even reached 11915 yet. Keep an eye on Gold and be careful trading around ECB

01 Dax Daily Chart
01 Dax Daily Chart

Dax Hourly Chart

This chart is beginning to look like we are in a range and with 11925 providing the base, it suggests that we can find some value here for short-term buying opportunities, assuming that it continues to hold. The base of this range is around the 50% retracement, which adds some strength to the pattern.

There are currently no signals on this chart, but I am watching for either a break down to 11875 or a hold of 11925 and a move back up towards 12000.

03 H1 Dax Chart
03 H1 Dax Chart

Dax Intraday Chart

There is a signal on this chart, a buying signal, but it’s not very strong. There is bullish divergence between the price and the oscillator, we are also touching the lower Bollinger band. I would prefer a more compelling divergence signal, below the band, but we can’t make the market move in our direction.

However the algo is already long from 11934, currently in a little bit of profit, but it’s so early in the trade to really tell how it will play out.

05 Dax m5 Chart
05 Dax m5 Chart

Dax Support & Resistance

Daily R212062
Daily R112002
Daily Pivot11959
Daily S111900
Daily S211857
200 Day EMA10998