Dax Technical Analysis 17/06/2016


Good morning traders!

Yesterday I was on my way to a gig with my band (Kadia), who played last night in Abingdon supporting Jess Vincent and we were playing in the Unicorn Theatre. This theatre is easily on of the oldest buildings I have ever played in, rich with history, going back to the 14th century. It was originally an abbey. Of course Henry the 8th was responsible for the desolution of monastries and abbeys in Tudor times, but he decided to not completely demolish this particular building (although he did succeed in destroying most of it). We played in the part of the building that still remains and it was worth the drive.

So anyway, let’s take a look at the market.

We printed an unusual daily candle yesterday, which began heavily bearish and closed as a bullish engulfing candle with a long tail. This is usually a bullish reversal signal, especially when seen at an area of support. I think 9450-9500 can definitely be seen as a support zone. So today, if this ‘bullish reversal’ is to continue, the we need to take out the high from yesterday and close above 9657 (a sticking point recently, with stubborn resistance).

We are trading around 9615 (at the time of writing this morning) and assuming we have not seen the low of the day already, we could get down as low as 9530 before finding higher prices. So I am looking for buying opportunities today, but have been waiting for the UK open to see a reaction.

Yesterday we carved out a clear double bottom at 9432 (the weekly S2) and have been short term bullish ever since. 9600 is a level to watch, because if stay above that, then we are still looking to continue making higher highs and higher lows. If/when we take out 9675, I may look to target the daily R1 for a decent trade. If we take out 9600, it’s not necessarily time to short, because we have the daily pivot at 9584 which may provide some support.

A far as a trade setup is concerned, I haven’t made any trades today yet, but I was considering a long from 9632 with a stop under the daily low, however that trade has run away from me while I was typing here.

Come and follow my trading signals here

Now I have just finished the article, I have noticed that is would have actually been a very good trade to start the day. Never mind.

Dax Support and Resistance

Daily R29818
Daily R19738
Daily Pivot9584
Daily S19503
Daily S29349
200 Day EMA10123

Dax Charts

04 Dax m30 Chart
04 Dax m30 Chart
03 H1 Dax Chart
03 H1 Dax Chart
02 Dax H4 Chart
02 Dax H4 Chart
01 Dax Daily Chart
01 Dax Daily Chart
05 Dax m5 Chart
05 Dax m5 Chart


2 thoughts on “Dax Technical Analysis 17/06/2016

  1. I am currently on short side with 9485 (dax spread betting ) and also on a buy postion as 9678. Now I am not sure when to exit … I thought DAX will break down to 9400 levels..Do I exit my short now?.Please advise.

    • You have effectively hedged (straddled) your short, but it seems you did not plan any exit strategy, where was the stop loss on that short trade? You are down around 200 points overall with that hedge and trading out of it is not going to be easy. At some point, unless you are incredibly fortunate, you are going to have to take a hit. That problem is, if you close the long, but the market continues moving higher (meaning you hedge again) your hedge becomes wider and wider and wider and it will put strain on your margin.

      It’s tough to cut a loss that big, but the key is to not get into those positions.

      Who can say where we move, but many analysts believe there is plenty of room to the downside, coming in the next 6-18 months

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