Dax Technical Analysis 15/11/2016

Good morning traders!

All the major US indices, USDJPY and Dax seem to be a little toppy at the moment and could use a pullback before building higher. USD has been very strong recently and could do with a correction too and Gold has bounced slightly from its recent lows, after dropping over $100 is the last week or so.

Dax s in the same boat at the US indices and is now trapped in a small range between 10700-10720. Which direction is it going to break is not certain, but bulls seem to be losing some steam at the moment, which makes a turn around more likely, even if it is just a pullback. Let’s have a look at the charts

Dax Technical Analysis

On the daily chart, the long-term trend has been bullish since February ’16 but sideways since August ’16. We are now at the top of that sideways range and the recent candles are showing rejection/exhaustion at trend resistance. but it’s always very difficult to call the right place to sell into a strong, short-term, trending move like the one we have seen over this last week. 10800 has rejected price a few times now and I suspect traders are placing their stops above this at say 10835, risking around 110 points or so (with current price 10725) looking to target a move down to 10500. 2.2:1 reward to risk ratio. An even better setup could be a sell limit order higher up, closer to 10785, risking 50 points for 285 gain. 5.5:1 return. That interests me.

On the H4 chart I am watching the Stochastic oscillator as we have been over-bought since the 8/11. There is no signal available using this technical indicator at the moment, so we could even move high before it turns around. However the longer we remain here, in the over-bought territory, the higher the chance of a move to the downside, in my opinion.

On the H1 chart we have a mini wedge pattern, perhaps even bull flag developing, so I am watching for a break of that. On the m30 chart I have used the Parabolic SAR indicator and price has broken through resistance, suggesting the bullish bias is back in play, for now.

BULLS

Watch for a break of 10835, looking for better entries closer to 10500. Short term, the 10670 level held price yesterday, so a buy from closer to that could be interesting. There is also a lot of volume supporting price there.

BEARS

Price action is looking heavy at the moment and bullish momentum seems to be slowing down opening up a selling opportunity. Watch for a break below 10670 as price moves into the low volume zone again, also a  sell from around 10800 could be interesting.

Dax Trading Signals

Just a single trade yesterday, algorithm based, which I decided to close before the market shut to avoid any nasty surprises on open. In hindsight, which is always easy, the trade went our way and would be performing quite well. But I am happy with my decision.

DAYTRADE BUY #GER30 @ 10695.95 | SL:10665.95 | TP:10785.90 | ID 58790259

CLOSE DAYTRADE BUY #GER30 @ 10713.35 | PROFIT: 16.44 PIPS | 2016.11.14 20:58 (GMT) | ID 58790259

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Dax Support & Resistance

KEY LEVELS
Daily R210860
Daily R110785
Daily Pivot10727
Daily S110651
Daily S210593
200 Day EMA10349

Dax Charts

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