Dax Technical Analysis 14/07/2017

Good morning traders. I have had a couple of message this morning saying that the Dax expectations are for a bearish day today. It’s Friday, which can often be a reversal day. We have enjoyed quite rally this week, so it would not be unusual to see a retracement. However, 12600 has been doing a good job of containing the price.

I posted a couple of ideas in The Journal showing potential areas that price could be looking for. The bearish case depends on a break through the 12600 support that built yesterday. I really thought we were going to break it yesterday, but we did not. As a result of the price action yesterday, we have the following levels to watch (futures)

Value Area High – 12643
POC – 12625
Value Area Low – 12615

Yesterday we gapped higher first thing, closed the gap and then tagged the value area low from Wednesday, all within the first hour. At that point we were below the deviation low and the London open sparked a move higher. This pushed price to the highs of the day, above the deviation high, by mid morning. The price was rejected from these highs and turned around to test the lows and then oscillated around the POC and vwap for the rest of the session, before settling on the value area high.

Dax Video

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Daily Chart

  • Broke, and closed, above the Wednesday high, but with a small range
  • In between the Grey and Black line, suggesting we have room to move higher before finding resistance
  • Bulls are still expecting this recent activity to be the new higher low
01 Daily Chart - Dax Technical Analysis
01 Daily Chart – Dax Technical Analysis

Dax 2-Hour Chart

  • Bullish target circled here, assuming that the current move is only halfway through its cycle
  • Currently trading inside two parallels from the original point of ignition
  • If price continues to move sideways, perhaps this is the new channel
02 2 Hourly Chart - Dax Technical Analysis
02 2 Hourly Chart – Dax Technical Analysis

Dax 5-minute Chart

  • The was a divergence above the Bollinger band here, but price is trading sideways, no real setup
  • Trading  on the daily pivot and the median line is creeping up to meet the price
  • Draw a box around price, watch a break out and look for extension targets
03 5m Chart - Dax Technical Analysis
03 5m Chart – Dax Technical Analysis