Dax Technical Analysis 21/03/2017

Good morning traders!

Shorter article than normal today.

Yesterday we were a quarter percent down on the day after a neutral doji from Friday, but we only traded in a 54 point range and that is half the daily ATR. So it’s slightly unusual price action at the moment. Be aware also that there is bearish divergence on the daily chart – a strong selling signal (for swing traders) and allows traders to take a short from current levels with a stop above the 2017-high looking to target a deeper correction back below 11900.

The overall trend, however, is still technically bullish above 11900, with first major resistance at 12190 and the DaxTrader algorithm is bullish and looking for opportunities to buy.

On the shorter time frames we are trapped in a small range, with price action compressing and not moving very far, the Bollinger bands are beginning to pinch and as we often find, in these situations, a breakout is likely to occur so keep an eye out for that. I watching a reaction between 11995-12045 as there may be a low volume pocket here.

We have no signals open at the moment, we pretty much broke even yesterday, perhaps 4 points up overall, but only two Dax trades were executed (both longs).

03 H1 Dax Chart
03 H1 Dax Chart

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Dax Support & Resistance

Daily R212170
Daily R112122
Daily Pivot12070
Daily S112022
Daily S211969
200 Day EMA11069