05-dax-m5-chart

Dax Technical Analysis 24/10/2016

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Good morning traders!

We broke above 10700 last week, which was potential significant as we have been trapped in a range for some weeks. The ECB announcement on Thursday provided encouragement to Bulls as the door was left open (although nothing confirmed) for a further extension to the QE program, as opposed to the more dovish tapering suggestions.

To start off this week, my trading algorithm has loaded itself with bullish settings, looking for buying opportunities, so we will keep an eye on how that performs.

The daily chart shows the we are close to putting in a triple top formation, just under 10800, so this is the next key level to watch, as a break out could be interesting. Failure to take out 10800 may see a rejection and open up a decent shorting opportunity. The H4 is still looking sideways with no clear direction, but the 10800 is still clearly the obvious resistance level.

The H1 chart is providing conflicting signals because on one hand we have a bullish breakout above the 10700 horizontal resistance and price tested this level from above and then closed above it on Friday, all of which is a bullish sign. However a bearish setup is there too with the bearish divergence with the RSI staying relatively flat while price continues to print higher highs. All too often this set up turns into a decent selling opportunity. The conflicting signals just provides a little confusion to traders who are unable to take a side. The 30 minute chart is still showing the up-trend.

On the five-minute chart we are still Bullish as we are making higher highs and higher lows, the trend defining level is 10600, which would be just below the daily S1 (pivot point indicator). If we break above the high from last week, around 10750, we still do not have a clear path above, because 10800 is the next barrier. So traders who are not already long are probably more interested in buying from lower levels, or buying a break through 10800.

Price was very compressed on Friday, so the pivot levels are going to be a little shallower than normal. This week watch for a break above 10800 or a break below 10600

Dax Support & Resistance

KEY LEVELS
Daily R210774
Daily R110747
Daily Pivot10708
Daily S110681
Daily S210642
200 Day EMA10285

Dax Charts

03-h1-dax-chart
03-h1-dax-chart
02-dax-h4-chart
02-dax-h4-chart
01-dax-daily-chart
01-dax-daily-chart
05-dax-m5-chart
05-dax-m5-chart
04-dax-m30-chart
04-dax-m30-chart