Dax Technical Analysis 10/07/2015

Good morning traders!

A solid bounce yesterday, closing above the daily 200 EMA but below 11k. Are we now ready for a further sell off?

The trend defining level is currently 11600 so as long as we stay under that, we are bearish, but more short term recent highs of 11275 are levels of note, so if we continue to move higher, this is likely to provide some strong resistance. My auto trader is short so I am interested to see how it all plays out. 11,000 is still significant as support:resistance, as it was in February, so we could well see trading consolidate round here for a few days, until a news release comes along.

The swings are still going to be big on a daily basis, so trade with caution.

Dax Support & Resistance

Daily R211228
Daily R111094
Daily Pivot10899
200 Day EMA10891
Daily S110765
Daily S210570

Dax Charts

Still difficult to predict movement with us being on such a key level (200 EMA)

2Dax Daily Chart
2Dax Daily Chart

Bearish channel remains intact

3Dax Intra-day Chart (4 hour)
3Dax Intra-day Chart (4 hour)

The pullback was expected, but do we continue to downside now?

4Dax Intra-day Chart (30 minute)
4Dax Intra-day Chart (30 minute)

It looks heavy

5Dax Intra-day Chart (5 minute)
5Dax Intra-day Chart (5 minute)

4 thoughts on “Dax Technical Analysis 10/07/2015

  1. i am loosing money after it rose higher and higher .. please tell me your analysis should i close the trade and loose the money or wait untill it comes back to its original position…

    • It’s difficult for me to say. I can not legally advise, but during volatile periods it’s normally best to not have trades open over the weekend with Euro group meetings on the agenda. I personally don’t short stock markets, although my auto trader software did short. If a deal is not made, the shorts could come good, but if a deal is made, shorts will be hurt.

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