We are currently in a symmetrical triangle formation on the 5-minute chart. The price reached the R2, S2 and settled on the daily pivot yesterday. We are in the middle of two key support-resistance zones on the hourly chart. Are any of these significant? Let’s have a look with the Dax Technical Analysis 23-05-2017.
Daily Chart – German Dax
The first chart to look at is the daily chart because I have noted a few point here. The Dax is trading close to the highs and recently saw an ascending wedge formation fail . Price is now trading around 200 points lower and perhaps may reach the 12400 support . Should price reach that level, we are creating a head & shoulders formation, with the left shoulder , head  and right shoulder . Keep an eye out for that, because if that pattern does play out, we could see a further 400 point move back down towards 12000.
We are currently in the middle of two key zones here. The all-time highs of 12830+ and the support of 12400. The price is hovering around the mid-point of those two technical levels. We have a rising trend line supporting price in the short-term, so I am watching for a break or hold of this level to indicate the possibly next move. A break lower suggests a move to 12400, a hold above suggests a move to the highs again.
The Dax is currently bearish according to the recent daily fractal, so let’s consider that. A swing-trade short from current levels doesn’t provide an excellent reward to risk ratio, unless a trader wanted to target 12100, with a stop loss of 12900. Otherwise, an alternative option is shorting with a stop loss above 12700, looking to target 12450.
Dax Five Minute Chart
A symmetrical triangle is often used in Dax technical analysis, but perhaps too frequently. I don’t really believe there is much weight behind this formation. It normally occurs in directionless markets, most commonly after a large move, most often on a short time frame. In this case, it ticks most of those boxes, so it’s probably a red herring, ignore it.
We did, however, reach the daily R2 yesterday, followed by the daily S2, then settled almost exactly on the daily pivot. A near perfect textbook example of trading the most common pivot ranges. As pretty as the pattern is, I can not really see much significance in terms of opportunities, but I am watching for a break.
Dax Live Trading Signals
Dax Technical Analysis 23-05-2017 provides readers with the basic levels, but if you are looking for trading signals, then come and receive live trading signals directly to your phone and join the trading community here. More information is available on this page.
The current promotion is three months of signals for £94 and can be purchased using this link: https://www.paypal.me/DaxTrader54/94 .
Come and access our free broadcast channel on Telegram messenger, (additional Dax analysis and messages to my readers and subscribers) simply download the Telegram messenger (from www.telegram.org) and then click this link: https://t.me/joinchat/AAAAAEAypsW3Xet_6ngBlw
To receive live trading signals please complete your purchase using this link: https://www.paypal.me/DaxTrader54/94
Dax Support & Resistance
|14 Day ATR||122.17|
|200 Day EMA||11521|
Dax Technical Analysis 23-05-2017 written by Chris Bailey[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]