Hello and welcome to my Dax Technical Analysis for 18/05/2017.
A brutal day yesterday for any bulls, as price collapsed through all the support levels we discussed in the previous article. In fact price closed below the daily S4 yesterday after losing over 1.5% of its value on the day. Because of this, the daily candle for yesterday is aggressively bearish and traders have to consider price wanting to move towards 12375.
Dax Technical Analysis
On the daily chart, we are still above the 200 day EMA at 11500 and above the kumo cloud. For this reason, we should still assume the long-term trend is bullish. There is also a bullish trend channel on the daily chart which will not be broken until price takes out 12150. So although we have had an aggressive sell off, it has not yet confirmed any reversal.
The triple top on the hourly chart is compelling and will likely prove to be a new major resistance level. If price is seeking out the next major support level, we should look towards 12375, keeping in mind that there will be some traffic between 12400-12500. The short term down trend will continue if we take out
On the 15m chart, the short term down trend will continue if we take out 12500 and will end if we take out 12650, so keep an eye out for those levels and the support and resistance levels below.
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Dax Support & Resistance
|14 Day ATR||119.92|
|200 Day EMA||11498|