05 Dax m5 Chart

Dax Technical Analysis 14/07/2016

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Good morning traders!

No video today, my server is currently down so I don’t have my charts.

There has been plenty of UK related political news recently with the official announcement of Theresa May as PM and Boris Johnson as Home Secretary and various other cabinet reshuffle and speculation over the formation of the new UK government line up and we have plenty on high impact news on the Economic Calendar today as well, with various BoE and MPC releases, so cable and GBP pairs could provide some interesting opportunities, but there isn’t much on there concerning the Dax.

Dax Technical Analysis Summary – Yesterday

From late morning on Tuesday this week, we created a fairly narrow trading range, between 9940 – 10020. Price action began to slow down and trade sideways threatening to reverse (or at least retrace) the strong bullish momentum we have had. The article I wrote yesterday talked about the fact that we had broken the recent bullish trend channel and it may be time to look at shorting. So after price pierced 9940, I changed my indicators and software to a bearish template and looked for shorting opportunities. My first trade lost, and this is the current trade that was sent out to my premium subscribers. This one is currently open and is sat on +51 points profit overnight. Find out more about premium signals by clicking here.

SELL GER30 @ 9977.95 | SL:10003.17 | TP:9831.72 | 2016.07.13 11:30 (GMT) | ID 55433718

This trade came about from a rejection of 10,000 and played out quite well for the rest of the trading session. I will likely move the stop-loss first thing to around 9940 to secure some points and let it ride.

 

Dax Technical Analysis – Today

 

Heiken Ashi is currently choppy and these conditions can be perilous to trade, just in yesterday’s trading session alone we changed from Bullish to Bearish to Bullish to Bearish, so not the best guide, but currently bearish, so I am looking for short setups.

I have set up my DaxTrader RSI automatic trader to the following settings: RSI Settings: 60 & 10 levels with 8 periods. 17 ATR profit target and 3 ATR stop-loss. Trend Filter: No

To me, the two recent daily candles (with their wicks) look like they could be suggesting a direction change, so it strengthens my bearish bias. We also still have the 10,000 resistance above limiting further upside.

9900 support held yesterday, so I am watching for a break of that. We are currently making lower lows and lower highs, but really price is moving more sideways than down. If 9900 goes, then I will be watching out for 9875 and 9840 as next support levels and beyond that; 9750.

Of course if this idea fails and we break above 10,000, and the weekly high of 10017 then we have little resistance in the way before we start testing the pre-Brexit levels of 10250+, except perhaps the weekly R2 at 10093. So I will discard my bearish idea if this break looks set to happen.

Dax Support & Resistance

KEY LEVELS
Daily R210048
Daily R19987
Daily Pivot9942
Daily S19882
Daily S29837
200 Day EMA10057

Dax Charts

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