Dax Technical Analysis 19/01/2016

Good morning traders!

I hope you guys had a lot more success on the market yesterday than I did. Blue Monday is supposed to be a miserable day and miserable it seemed to be. Trading action moved sideways and coiled up ready for a breakout and it seems that the break has happened first thing this morning, rallying nearly 200 points from the Monday close.

This morning we gapped higher and made an early morning high of 9747, it does seem that markets are looking to relieve some of the bearish pressure and rally a bit further so bears can possibly get short from better positions.  In the short term though I am watching 9680 as a break below this could trigger a closing of the gap.

Targets to the downside would be either high from yesterday 9658 or a deeper target could be the value area high from yesterday at 9567, somewhere in the middle of those would be a fibonacci retracement.

Yesterday provided a decent swing opportunity for bulls with a stop under the major low from October looking to target somewhere near 10k. Current levels don’t provide a decent risk:rewards setup for that kind of trade, but we are coming up to previous support from trading earlier in January so there may be a shorting opportunity soon.

Dax Support & Resistance

KEY LEVELS
Daily R29752
Daily R19640
Daily Pivot9547
Daily S19435
Daily S29342
200 Day SMA10597

Dax Charts

[wp_ad_camp_1] Still strongly bearish at the moment, but an agressively bullish start to today has allowed the relief to begin. We are bearish still below last week high

02 Daily Dax Chart
02 Daily Dax Chart
[wp_ad_camp_1] There was a bollinger band touch and now we are heading back towards the median line, I am looking for shorting opportunities still

03 H4 Dax Chart
03 H4 Dax Chart
[wp_ad_camp_1] We have crossed through the 34 hour EMA and the weekly pivot, currently stalling around 9730, a break above 9750 can take us up to 9810.

05 m30 Dax Chart
05 m30 Dax Chart
[wp_ad_camp_1] Choppy conditions yesterday as the EMA cross strategy would have caused some trading casulties

09 m10 Dax Chart
09 m10 Dax Chart
[wp_ad_camp_1] We are already at the daily R2, but trading has slowed from the early rally, a break below current prices could take us down through a gap close

06 m5 Dax Chart
06 m5 Dax Chart
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