Good morning traders!
Before we take a look at the technical analysis, let’s have a quick round up. European and Asian stocks slid heavily on Wednesday on fears that a growing crisis surrounding US President Donald Trump could lead to his impeachment and shatter any chances of his economy-boosting agenda being implemented. It becomes a period of transition from Trump bump to Trump dump. There is a fear that Trump’s plans for tax cuts, spending and red-tape slashing — which fuelled an equities and dollar rally following his November election win — will be thrown off course. I am sure many traders, myself included, would agree that it is not surprising at all if impeachment happens because nothing is really shocking anymore.
We saw small gains on the Dax yesterday, partly a relief from the sell of on Wednesday and partly because we reached a major support level.
Dax Technical Analysis
The bullish trend channel has been highlighted more clearly on the daily chart and the Kumo cloud and 200-day moving average, are below the lower channel level, almost parallel. However, the most interesting part of the daily chart, is the break above the trend channel, only for the price to now test the level from above. I am watching for a reaction here or a break below 12375
The hourly chart showed bearish divergence, go and check that out on your own chart, however the 15 minute chart suggests a potential break out setup. We are currently trapped between those two horizontal levels (12485 – 12650). A break above 12650 can open up a move much higher and a break below 12485 can have the opposite effect.
The 5 minute chart also shows the bearish divergence and this signal was below the Bollinger band, which can often be great signal, because the likelihood of a reversal/retracement, is high. Watch for a break above 12635. If you are looking for trading signals, then come and receive live trading signals directly to your phone and join the community. More information is available here.
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Dax Support & Resistance
|14 Day ATR||119.92|
|200 Day EMA||11499|