Dax Technical Analysis 22/05/2017

Good morning traders and welcome to the daily Dax Technical Analysis!

Let’s have a quick roundup of the news: Spain’s main opposition Socialist party (PSOE) voted for former party leader Pedro Sanchez and focus now turns to the party Congress on June 16-18th which is aimed at uniting the party. The EU Commission is reported to be eager to find fresh sources of financing for the Eurozone and shift more powers away from Eurogroup to EU Parliament. German Finance Minister Schauble and French Finance Minister Le Maire want a harmonised EU corporate tax rate. France and Germany argue over where the European Banking Authority should be located post-Brexit, with the parties disagreeing between Paris and Frankfurt. GBPUSD took a tumble as Theresa May’s lead narrows in the polls. North Korea are at it again with their missile tests.

Dax Technical Analysis

On Friday we saw a relatively subdued end to the week and I say this because the daily trading range was only 65 points and the market advanced only 0.10%. I found that the most interesting observation about Friday was how the 12600 level held the price for most of the trading session allowing traders to buy from here with good reward to risk. But overall, not many opportunities to trade. Trend traders would have likely been chopped up.

This morning we opened with a gap higher, approximately 36 points, reaching our current daily high of 12685. However, price turned around shortly after this level and as a result has since closed the gap finding a low of 12609. Therefore, after only 2.5 hours into the trading session, we have already overtaken Friday’s trading range. These two levels will be interesting to watch, regarding price action. A break above 12685 (despite it being the daily R2), can open up the door to 12732 and higher. But on the other hand, a break below 12609 (more specifically 12592) can open the door to 12500.

Let me turn your attention to the daily Dax chart, please go and have a look at the volume indicator on your daily chart. My volume indicator shows a huge spike on Thursday of last week so I would like to know whether yours is doing the same. Because it seems like we have a significant indicator on the chart there. Talk to me on Telegram. In summary, the most noteworthy, the daily chart is still clearly showing the bullish trend channel, which is the reason I remain bullish longer term.

Dax Technical Indicators

Regarding the technical indicators, we are above the daily 200 EMA but below the most recent daily fractal. So the signals are suggesting we should look at the lower timeframes for guidance. Turning to the 5-minute chart we are above the parabolic SAR, which is bullish. But my current moving average cross indicator is pointing to the downside, which is bearish. Therefore, I am bullish longer term, yet, I am neutral in the short term.

Dax Live Trading Signals

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Dax Support & Resistance

14 Day ATR119.4
200 Day EMA11523
R2 (Daily)12690
R1 (Daily)12659
Pivot (Daily)12624
S1 (Daily)12593
S2 (Daily)12558

Dax Charts

Dax Technical Analysis - m5 Chart
m5 Chart – Dax Technical Analysis
Dax Technical Analysis - Hourly Chart
Hourly Chart – Dax Technical Analysis
Dax Technical Analysis - Daily Chart
Daily Chart – Dax Technical Analysis
Dax Technical Analysis - m15 Chart
m15 Chart – Dax Technical Analysis