Dax Technical Analysis 25/11/2016

Good morning traders!

The story is still the same as yesterday, so I can’t imagine there being much to report on today.

There is still the two carved-out zones dominating price action at the moment, which I posted the charts for already. We have been held in between those two zones for most of November, but we are yet to really test them. I posted another poll the other day asking whether we reach 10500 first or break 10830 and the results were:

47% – 10500

53% – Break 10830

So whilst it may only be a poll of 68 people, it still shows a fairly even battle.

Dax Technical Analysis

It was a choppy start to the trading session this morning, we opened with a gap higher, which closed within the hour. We then almost immediately rallied to make a new high of the day, which was rejected and as a result, we sold off 50 points before recovering them all (as of the time of writing). Choppy and dangerous conditions for a trend trader.

If we look at a volume profile on the hourly chart, going back to value area from a recent volume profile, from 9/10th November to now, we can see the value area is between 10635-10720, the is the area where price has spent a large majority of time (70%) trading, so whilst we may be in a larger range overall, this smaller range may provide traders will mini intra-day opportunities to get in and out for 10-15 points, selling at the top, buying at the bottom, or trading a break-out towards the larger range bounds.

So this is my main idea for today, watch for a break of the value area. I am looking for a break to the upside.

I am still interested in having a buy order at 10400 and 10250, to capture any sudden pullback as this is an area of demand.

Dax Charts


Dax Support & Resistance

Daily R210755
Daily R110724
Daily Pivot10687
Daily S110656
Daily S210619
200 Day EMA10358