A little later than expected today, so I will keep the article to the point.
Yesterday we gained around 120 points, creating yet another bullish engulfing candle but still failing to take out 10645, an area that has rejected price a number of times over the last month. This opens up an interesting selling opportunity as we are near resistance. I suspect that there are a lot of stop losses above yesterday’s high and perhaps longer term or swing traders, will have stops above 10700 and looking to target a move back down towards the bottom of the range.
Longer term we are bearish below 10700
Short term, we are bullish above 10585
The daily chart is still range bound, above the 200 EMA but restricted by three major resistance levels 10645, 10700 and 10800. The 4 hour chart shows the sideways-range-bound price action more clearly and there is not much to comment on.
On the hourly chart, we see price respecting 10645 resistance with a sell off down to 10587, we are now settling and threatening to take out 10600 and head towards a pullback zone (10550-10580). If price holds above the low of today, this will create a buying opportunity.
On the 30 minute chart, you can see the start of a short-term bull trend, although a break below 10585 will put that under pressure. If the 10585 is the next low, then a break above 10650 is the next target for bulls.
On the 5 minute chart price settled on the daily pivot and seems to now be looking to break above 10625. SPX500 is leading the way and seemingly pulling the Dax along with it.
Dax Support & Resistance
|200 Day EMA||10271|