Dax Technical Analysis 18/02/2016


Good morning traders

FOMC minutes were more dovish and basically suggested it would be unlikely that there would be another hike until at least June. The Fed are unsure of the economic developments, as expected, but analysts are expecting no further hikes until September. The market are pricing in a 50/50 chance of a hike this year.

We have now also reached a crucial level of resistance on the Dax as well and the bearish wave could well continue. Many traders were looking for a pullback to somewhere between 9400-9500 before a resumption of the “risk-off” sentiment. Yesterday we reached my target of 9400 and now we  wait for a reaction.

We have reached the .618 fib zone from the  January 28 high to the Feb 11 low and this zone is also the underside of the major previous support. Therefore I am personally bearish and will be looking for shorting opportunities. The DaxTrader RSI automatic trader could be useful in situations like these, you would set it up something like this:

  • Timeframe: 5 minute chart
  • RSI periods: 14
  • Levels: 60 20 (Bearish trend)
  • Sell the signals
  • Profit targets and stop losses are up to you

So if we go back to basics, we are in a bearish trend (overall), AND we are near resistance, we now just need the selling signal to trigger a short. I think we are going to get that today.

Dax Support & Resistance

Daily R29610
Daily R19509
Daily Pivot9324
Daily S19223
Daily S29038
200 Day EMA10358

Dax Charts

02 Daily Dax Chart
02 Daily Dax Chart
03 H4 Dax Chart
03 H4 Dax Chart
05 m30 Dax Chart
05 m30 Dax Chart
06 m5 Dax Chart
06 m5 Dax Chart


3 thoughts on “Dax Technical Analysis 18/02/2016

  1. Thank you.

    First time I noticed you are so sure about shorts, I am on same path but already added shorts at 9300 so really hope you are right.

  2. Hi Chris.

    For me still bullish for the moment.

    We reached my long target 1 of 9344 and almost second target of 9553 (9548). I have a target 3 on the upside of 9633.

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