Dax Technical Analysis 16/02/2017

Good morning traders!

Ahead of a meeting in Berlin, the Canadian PM and German Chancellor have agreed a trade deal, the two leaders with the most liberal values on immigration and trade can consider this a major political victory, although CETA is far from perfect. It can be considered a victory especially is it’s a middle finger to Donald Trump and also when considering the political risks that sit on the horizon regarding France, more specifically the growing popularity of Le Pen, who would sit on the opposite side of the spectrum of these two leaders. It’s a Euro-Canadian victory.

In other news: Greece is back on the radar, the crisis that was so narrowly avoided in 2015 was only ever really swept under the carpet, but the resulting bumps are causing people to trip again. “People demanding the return of the Drachma should travel to North Korea” that is the kind of burn that a 17 year-old keyboard warrior would post on Twitter. But no, this time it was Yannis Stournaras, Governor, Bank of Greece who said it. I may have quoted him out of context, but still, a little more tact needed perhaps? What a ridiculous thing to say.

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My DaxTrader trading algorithm is currently neutral.


Dax Daily Chart

We printed a doji just under previous resistance on the daily chart yesterday and as I write this article now, price has found 11766, suggesting that we are bearish below the high from yesterday (11848). The SPX and other US indices are overdue a correction, so if they begin that phase, it will be tricky for the Dax to diverge. Keep an eye out on those markets.

01 Dax Daily Chart
01 Dax Daily Chart

Dax Hourly Chart

We are in the middle of two fairly key levels, marked out as horizontal lines (black) on this hourly chart. 11710-11725 is a zone that could attract some buying attention, assuming that we are not in a corrective phase. But potentially we could also find the market rangebound. My algorithm is currently neutral at the moment suggesting we are ranging.

03 H1 Dax Chart
03 H1 Dax Chart

 

Dax 5m Chart

Price has changed pretty quickly since I printed this chart. We are now testing the 50 hour moving average after having broken below the daily pivot and trading around 11770. If Gold continues to rally and SPX breaks support, then the low of yesterday is in sight and that 11710 support will be interesting to watch, especially if you want to buy.

 

05 Dax m5 Chart
05 Dax m5 Chart

Dax Support & Resistance

KEY LEVELS
Daily R211912
Daily R111852
Daily Pivot11787
Daily S111726
Daily S211662
200 Day EMA10845
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