06 m5 Dax Chart

Dax Technical Analysis 12/10/2015

Good morning traders!

A strong bullish weekly candle closed on Friday, right in the middle of the August/September cluster and we have began a period of retracement from the recent slump. The initial signs suggest that we are about to experience a decent bounce and last week has began that move. A purely technical trader might be cautious and wait for a break above the 10530 level for a change in bias, but the more aggressive trader will already be long and wait.

However the Dax has a habit of punishing a trader and this current move may well prove to be a trap. I agree that the fed hike has been postponed which will relieve some of the concerns in the market and I agree that the QE theme is going to continue whilst again will support markets, but perhaps a lot of this has been priced in. The majority of analysts and banks are pointing towards the German economic data and playing the soft card citing emerging markets, Chinese weakness, US manufacturing and VW scandal as negative factors. When you consider how reliant Germany are on exports to US and Asia, you can realise how exposed Germany are to this. It’s difficult to remain bullish with all this going on.

I don’t claim to be very good at predicting market movements, but if I was pushed I would say I like a move higher in the short term. The focus this week is clearly going to be the release of the ZEW expectations on Tuesday, considering how good this indicator has been, historically, at predicting turning points in IFO expectations, this will probably provide some short term bias. After this, I reckon we hit the zone and another selling wave crashes ashore. But like I say, predictions are not my strength.

I am watching the pivot levels again today and I have my orders set up ready to trade them, I will post results tomorrow. Good luck today!

Dax Support & Resistance

KEY LEVELS
Daily R210202
Daily R110159
Daily Pivot10102
Daily S110058
Daily S210001
200 Day SMA10664

Dax Charts

01 Weekly Dax Chart
01 Weekly Dax Chart
02 Daily Dax Chart
02 Daily Dax Chart
03 H4 Dax Chart
03 H4 Dax Chart
04 H1 Dax Chart
04 H1 Dax Chart
05 m30 Dax Chart
05 m30 Dax Chart
06 m5 Dax Chart
06 m5 Dax Chart

1 thought on “Dax Technical Analysis 12/10/2015

  1. Last weeks candle was positive but not yet a buy signal for me.

    We are now (as of 20:15 CET 14/10) below cyclical resistance at 10188 and in the process of forming a sell signal on the daily chart.

    The faster 10hour chart has already produced a sell signal yesterday below its cyclical resistance of 10037.

    Todays price action and close will be important to the direction for the rest of the week. The futures have started off weak this morning.

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