Dax Technical Analysis 27/07/2016

Good morning traders!

Dax Technical Analysis

We have reached the first of the three peaks from the daily chart, the pre-brexit high, and we are now entering into the resistance zone (marked out on the daily chart). We have had a strong move this morning, gapping open higher and managing to hold on to the gains. We have managed to hold above the daily 200 EMA for 5/6 days now, but how much longer can we hold out?

We are challenging 10350 at the moment which is significant as it was the previous high on the daily chart. If we break 10375, we could be opening up a move to 10475.

Heiken Ashi on the hourly chart is strongly green right now so I am looking for buying opportunities.

The weekly R2 is coming up on the pivot point indicator, often price doesn’t tend to extend much beyond those levels in a week. It may be prudent to wait for a pullback to go long. Entry targets could be around 10250, or closer to the daily pivot.

We have been forging a trend support line and currently that would be around 10200, but we are bullish above 10150.

The daily R2 is in view and this would also be a previous swing high on the daily chart, so I am watching for a reaction at these levels.


Dax Trading Signals

DaxTrader Signal
Yesterday’s Signal

This was one of the signals that I sent our yesterday that would be doing ok today, however my trailing stop was a little too tight and I got caught for a small profit of +19.

This morning another trade was opened, an automated trade from my RSI software (RSI periods 8, levels: 90 40 – bullish template, 5 minute chart) which bought at 10312 and I took the profit at 10326.

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We are experiencing a strong bullish wave at the moment, but there are certainly some concerns on the horizons, in terms of fundamentals. The Brexit case is going to be a slow burner, that delivers punches regularly over the next couple of years, but the main issue is that it is likely to impact on the ECB’s ability to get inflation to the 2% target, but there are not many more tools available to force it that way. The Bund has fallen so far that it is going to become incredibly difficult to find the purchases they need to fulfil their easing program. But the expectations are that the asset purchases will extend to the end of 2017. A bit of a discrepancy.

The market likes the idea of additional easing, it likes the idea of continued low interest rates and cheap money, and it likes the idea that the world hasn’t melted after the Brexit referendum result.

Dax Support & Resistance

Daily R210360
Daily R110310
Daily Pivot10228
Daily S110178
Daily S210096
200 Day EMA10066

Dax Charts

05 Dax m5 Chart
05 Dax m5 Chart
04 Dax m30 Chart
04 Dax m30 Chart
02 Dax H4 Chart
02 Dax H4 Chart
01 Dax Daily Chart
01 Dax Daily Chart
03 H1 Dax Chart
03 H1 Dax Chart