Hourly Chart - Dax Technical Analysis

Dax Technical Analysis 26-05-2017

So how many traders got caught up with that whipsaw yesterday? It took out the upper Bollinger band and then reversed taking out the lower Bollinger band, before settling back into its range. Traders would have been watching the trading range from Wednesday for clues. They would have been watching for a break above the highs, or a break below the lows. The Dax Technical Analysis 26-05-2017 will take a look at it.

It was a strange move this morning, traders would likely have jumped on to this and bought. However, it turned out to be manipulation because a large order was dropped and over 5k futures contracts were sold on relatively low volume. Profit taking? Distribution? Difficult to say for sure.

m5 Chart - Dax Technical Analysis
m5 Chart – Dax Technical Analysis

Yesterday we discussed these points:

  • SellLimit @ 12605 (H1)
  • Watch for Bollinger band break – new strategy?
  • The m15 triangle pattern

Sell Limit @ 12605

This order would have been filled on the reversal from the early rally. Price reached the daily low of HERE which was 30 points short of target. Given the nature of the move, partials could be taken, stop loss levels could be moved, but if the position was untouched, it’s still open. Let’s keep an eye out for it. On the 5 minute chart above, I am watching the intraday swing high and the intraday swing low as new breakout levels. I am still interested in watching this trade.

Bollinger band break

This move was a fake move. There was no break, price was rejected each time it tried. So we will look for a better opportunity.

The m15 Triangle Pattern

Look below and see the triangle patterns. The first (on the left) was the triangle pattern that I was originally watching. No opportunity there. The price eventually moved sideways, with no real break before the lines touched. We then had the whipsaw and this has created another triangle formation, but I am going to ignore it.

m15 Chart - Dax Technical Analysis
m15 Chart – Dax Technical Analysis

Let’s come back to this hourly chart and watch the trend line break. If this setup plays out it will great for that trade we discussed. I have drawn out a couple of zones. The support zone is a good target for shorts. The resistance zone, has been a support level in the past, so this is a potential spot for shorts.

Bulls are not rolling over yet, many believe that with FTSE, SPX and other markets doing well and close to their all time high, Dax will follow. Perhaps the price is more attractive at lower levels. Watch the breakout levels.

Hourly Chart - Dax Technical Analysis
Hourly Chart – Dax Technical Analysis

Summary

  • Sell limit order we discussed is still live
  • Hourly trend line break
  • New breakout levels on the m5 chart

Dax Support & Resistance

KEY LEVELS
Open12672
High12710
Low12538
Close12619
Range172
Change-0.42%
14 Day ATR116.53
200 Day EMA11554
Daily R212794
Daily R112707
Daily Pivot12623
Daily S112535
Daily S212451