Dax Technical Analysis 10/04/2017

Good morning traders!

Despite the growing tensions in Syria after fresh airstrikes were conducted and the Pentagon deciding to deploy an aircraft carrier group to waters near the Korean peninsula and North Korea stating its decision to develop nuclear weapons is correct (because of the US air strike on Syria) and the mounting debt pressure on Italy (too big to fail and too big to bail – but clearly failing) and Brexit and all that other depressing stuff, I will offer my congratulations to Sergio Garcia for his epic Masters win. Secondly, congratulations to Stewart Hagestad who took the ‘Low Amateur’ title, whose day job is a financial analyst, one of us. Well done Stewart!

Regarding European news:

ECB’s Mersch stated that extraordinary loose monetary policy cannot continue forever.

German Economic Minister Zypries is said to be sceptical regarding European safe bonds.

French Finance stated that the City of London will lose Euro-denominated trading operations following Brexit and that permitting London to continue Euro trading would risk EU sovereignty over the bloc’s money.

As for the Dax, we posted a defiant candle on Friday. Price action initially seemed bearish reaching the low of the day around early afternoon, before rallying for the remainder of the session. We now have two consecutive ‘tail’ candles, not far from support. Does this suggest the bullish momentum can continue a bit longer? Today we started fast, taking out the highs of the previous two days, falling just short of the 12300 level, but has since been rejected and price trades around 12212, only a few points above the daily pivot (pivot point indicator).

Bulls are watching the 12095-12191 zone for opportunities to buy. Targets being 12300, 12390 and a break to new all time highs.

Bears are watching a break below the major support of 12095 and with geopolitical tensions beginning to dominate headlines again, the case for a quick, sudden decline is definitely possible.

I am unlikely going to sell at the moment because I am thinking that 12191 (give or take 15-25 points) will hold price. But even if it doesn’t, there is support down to 12095. I will just prefer to wait for a spot to buy.

We are trading around the midpoint of the Bollinger band from the 5-minute chart, no clear signals to work with right now. We are oscillating around the midline and the daily pivot. Wait for a break.


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Dax Support & Resistance

14 Day ATR115
Daily R212317
Daily R112271
Daily Pivot12206
Daily S112160
Daily S212095
200 Day EMA11221

Dax Charts

03 H1 Dax Chart
03 H1 Dax Chart
05 Dax m5 Chart
05 Dax m5 Chart