Dax Technical Analysis 09/10/2015

Good morning traders!

Markets closed yesterday with some interesting developments from the BoE and ECB bringing cheer to investors, despite the profit warning from Deutsche Bank.

[quote]Minutes from the European Central Bank’s Sept. 3 meeting out on Thursday showed the policy makers have seen more pressure on inflation in recent months and acknowledged that the “overall economic situation in the euro area had become more challenging since before the summer.[/quote]

Retrospectively, buying from the daily S1 yesterday with a 20 point stop loss would have been a decent trade. Today I have placed three different orders to buy from the daily pivot, the daily S1 and the daily S2. In total I am risking 80 points if they all lose, or 230 points if they all win. I won’t be using trailing stops, these are just set and forget.

For today I am watching to see whether we get a continuation of the bullish movement up towards the 10200-10300 cluster, or whether we retrace slightly on the strong week and base build before moving higher next week. Most of the signals being received at the moment are bullish, except for the short term RSI signals which are extended and showing a need for a pull back.

My tip today, watch the pivot levels.

Support & Resistance

Daily R210234
Daily R110166
Daily Pivot10038
Daily S19970
Daily S29842
200 Day SMA10660

1 thought on “Dax Technical Analysis 09/10/2015

  1. Its worth noting Daily R2 is around the 100% extension of the inverted H&S pattern highlighted in an earlier post.

    Weekly – Down trend above support of 200EMA 9244

    Daily – Upcycle above support 9557 below resistance 200EMA 10642

    H4 – Uptrend – above resistance (now support 9887), Below 200EMA 10257.

    H1 – Upcycle – above pullback resistance 9931. Above 200 EMA 9838. In squeeze ie, current up move POSSIBLY running out steam. Cyclical end of trend about to be triggered with momentum divergence.

    M15 – Uptrend above resistance (now support )100018.

    Trade Plan today Friday :

    Watch hourly chart for possible short term bearish setup under cyclical resistance.

    Watch M5 and M15 15 charts for potential uptrend continuation trades with good R/R provided hourly chart still positive.

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