Dax Technical Analysis 13/07/2015

Hello traders!

We are rallying quite a bit this morning and heading into some resistance and this is off the back of a perceived deal being agreed as the Greece PM and his team sees some value in the new terms. There was an interesting opportunity to get in this morning on the open, but we are currently a little overbought and for any bulls out there, I would be waiting for a pullback before getting in for a position. A simple fib retracement zone could be interesting. Alternatively a breakout above the previous major (short-term) high could be another option.

The biggest talking point on the Dax right now is the breakout from the bearish channel (can be seen on the 4-hour chart). We are heading towards the kumo cloud on the daily chart so I am reluctant to enter a long just yet. But the deal seems to be more likely now and it’s not unreasonable to assume that we will rally even higher if it happens.

Dax Support & Resistance

Daily R211691
Daily R111541
Daily Pivot11250
Daily S111100
200 Day SMA10879
Daily S210809

My Trades

A huge mistake made on Friday, I didn’t adjust any of my settings for the auto trader and the trader opened up many positions, less than preferable positions, which did poorly. I then decided to adjust the settings after discovering what happened, but made a mistake with the lot sizes and it’s opened up two very large positions. One of those positions got lucky, but the other is currently in massive drawdown. I made a poor decision to keep that position open over the weekend and now the situation looks a little dodgy. So it just goes to show that a good month can easily be wiped out by making a mistake! I think it is safe to say that the auto trader is not quite ready for release, yet. But this is why we test it.

Regarding the John Anthony signals, I am currently at 6 trades (4 wins, 2 losses), I am around halfway through the review period and whilst I like the way the signal system works, I am expecting a much higher signal output in the second half.

Dax Charts

We are trading just below the daily R1 today after bouncing from the daily pivot this morning

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

A brief piercing of the daily 200 EMA has now bounced up towards resistance

2Dax Daily Chart
2Dax Daily Chart

Strong wave higher, breaking out of the bearish channel and this is a signficant break, but the rally will likely pullback and stabilise. I would like to enter on a pullback.

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

The weekly R1 is showing the current major resistance level and trend defining level.

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