05-dax-m5-chart

Dax Technical Analysis 14/10/2016

Good morning traders!

Better than expected Chinese inflation numbers has lifted risk sentiment and may have some impact on the markets today, especially after their trade data missed yesterday. So some might expect to see a rally today on the equity markets.

Let’s look straight at the charts.

Assuming that the rally we are seeing right now is a retracement or pullback as part of a wider bearish move, we can highlight the 10520-10560 zone as a short-term zone that bears will be targeting. This morning we have already close the gap that opened first thing and in doing so, broke through the 10465 support zone, which may act as a balance point. If the wider bearish move continues then it opens up a move towards the 10350 support and beyond that 10265.

Trading that view gives three targets T1 10465, T2 10350, T3 10265. That’s what is interesting to me at the moment.

The SnP500 is currently digesting its recent moves but I would again be looking to that market for more signals. Yesterday I published a chart on twitter showing bullish divergence on the H1 chart and suggesting that a bounce was on the way. I also sent it to my premium subscribers and it turned out to be a good opportunity. It is currently short term bullish above 2127, the Dax is short term bullish above 10440.

I remain bearish below 10700 so an entry in that 520-560 zone is the obvious short term play.

As far as my personal trading is concerned, I am long Gold, Short USDCAD and waiting to potentially short the Dax.

Dax Support & Resistance

KEY LEVELS
Daily R210650
Daily R110551
Daily Pivot10449
Daily S110351
Daily S210249
200 Day EMA10262

Dax Charts

04-dax-m30-chart
04-dax-m30-chart
01-dax-daily-chart
01-dax-daily-chart
02-dax-h4-chart
02-dax-h4-chart
03-h1-dax-chart
03-h1-dax-chart
05-dax-m5-chart
05-dax-m5-chart