03-h1-dax-chart

Dax Technical Analysis 18/10/2016

Hello traders!

If the day finished right now, then we would be looking at the fourth bullish engulfing candle on the daily chart in the last 30 days. Despite that, we are still struggling to take out the 10630-10650 levels which creates an interesting place for bears to enter again. Today, at the time of writing, we are already past the daily R2 and if price continues and the 10630-10650 area is taken out today, then there is another resistance level at 10700 and beyond that 10800, so it’s not exactly an exciting place to go long (from current levels).

According to the news wires, European equities are doing well this morning with energy names among the best performers, despite the crude futures rallying. The financial sector was lifted with Commerzbank yet again are leading the way higher in the Dax, and markets are welcoming the Deutsche Bank restructuring efforts (which are being well received by the German government).

I have noticed that this is bearish divergence on the H1 chart, but it’s not quite as compelling as past signals. The divergence does look more clear on the 30 minute chart. If this is the high of the day, then we have a good opportunity to take a short towards the 10545-10585 zone, which would be a retracement of the recent rally. A break below 10609 offers a opportunity to short to close the low volume move from this morning.

Dax Support & Resistance

KEY LEVELS
Daily R210624
Daily R110566
Daily Pivot10526
Daily S110468
Daily S210428
200 Day EMA10269

Dax Charts

01-dax-daily-chart
01-dax-daily-chart
02-dax-h4-chart
02-dax-h4-chart
03-h1-dax-chart
03-h1-dax-chart
04-dax-m30-chart
04-dax-m30-chart
05-dax-m5-chart
05-dax-m5-chart