Dax Technical Analysis 17/05/2017

Good morning and welcome to my Dax Technical Analysis for 17/05/2017.

The warning signs are there for buyers at the moment, we have created a triple top around 12835 and struggling to break higher, the daily chart is showing a suspicious looking spinning top, suggesting indecision, and the open this morning was pretty aggressively bearish. I read on twitter about there being someone who dropped 2000 SPX500 futures and that there is a behavioural similarity to markets 7 years ago because this is what happened before. So while we may see some familiar comments, this may just be the usual bearish rhetoric.

So let’s see what’s happening on the charts. Price remained practically unchanged yesterday after a slow day with some unusual ranging. I say this because we saw price bounce regularly. Price tested the low of the day three times and the high of the day twice, before settling in the middle. It seems like on days such as yesterday, traders who are trend following, get chopped up. A range trader would have been laughing.

Dax Technical Analysis

So what can we expect? First of all, the bearish view right now is to short from between 12760-12790, stops above 12840 and target 12620 or 12550 with partials taken at 12700, bears are expecting to test that level once more today. A range trader is selling between 12800-12840 and buying between 12650-12700. So they will benefit from the retest of 12700. Bullish traders have to concede that prices are not looking great, but are still buying above 12700. Targets are impossible to say as we’ve never seen higher than 12840.

Keep an eye on the news wires because there are normally interesting developments, such as ECB’s Coeure stated that the recent rise in long-term yields hasn’t affected ECB policy. US President Trump asked ex-FBI Director Comey to close the investigation into Trump’s former National Security Adviser Michael Flynn, according to news reports citing a Comey memo. Finally, looking ahead, highlights include UK inflation, German ZEW, US Building Permits, Housing Starts, ECB’s Nowotny and Coeure.

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Dax Support & Resistance

14 Day ATR102.22
200 Day EMA11490
Daily R212872
Daily R112837
Daily Pivot12804
Daily S112769
Daily S212736

Dax Charts

01 Dax Daily Chart
01 Dax Daily Chart
Dax Technical Analysis 17/05/2017 - 60 minute chart
03 H1 Dax Chart
Dax Technical Analysis 17/05/2017 - 15 minute chart
03 m15 Dax Chart
Dax Technical Analysis 17/05/2017 - 5 minute chart
05 Dax m5 Chart