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Dax Technical Analysis 25/10/2016

Good morning traders!

Dax Technical Analysis

According to my charts, yesterday we have closed at a 10774 after initially breaking the 10800 and threatening a breakout higher. The 10774 is the highest close of 2016 but closing under 10800 may be interesting as it produces a triple top formation after 6 consecutive bullish daily candles. Bears may be playing the numbers game here, especially with sentiment seeming to be heavily bullish as well. All too often when the crowd believes the market is going one way, it begins to turn the opposite direction, so don’t get caught out.

We have seen bearish divergence signals on both the H1 and m30 charts, but so far these have failed to yield any decent trades. I haven’t sent many sell signals recently because my main trading algorithm is still currently Bullish and looking for long opportunities. I also have started the process of building a new system based around a simple naked strategy, meaning no indicators and using price action only. I will keep you posted.

For today I am going to watch for a break lower, through the rising channel support or the 34 hour EMA visible on the 30 minute chart, initially down to the weekly pivot, at which point it’s likely that there will be an opportunity to buy. Or another option is the break above the high from yesterday.

There are a couple of items to watch out for on the economic calendar today; BoE governor Mark Carney is set to talk around 14:30 BST followed by Super Mario Draghi at 15:30 BST. Don’t forget US consumer confidence as well. All of these items pose some volatility risk to trades.

Dax Support & Resistance

KEY LEVELS
Daily R210885
Daily R110830
Daily Pivot10766
Daily S110710
Daily S210647
200 Day EMA10290

Dax Charts

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