Good morning traders!
It’s another bank holiday here in the UK, but the German market is still open for trading. I hope you’ve all had a good weekend. Let’s take a look at the Dax Technical Analysis 29-05-2017.
Here are the main points from the Friday article:
- Sell limit order we discussed is still live
- Hourly trend line break
- New breakout levels on the m5 chart
Sell limit order is still live
We originally discussed a sell limit idea from 12605, targeting 12505 with a stop loss at 12705. The level was reached on Thursday and has yet to reach one of the levels. The price managed to reach just under 12530 but has since recovered to bring the trade back to break even. So the price remains range-bound within the levels discussed below. Many traders would have looked at taking profits around 12555 because it’s 50% of the target. It’s a common trade management strategy. The sell limit order is still live
Hourly trend line break
The price has broken below the rising wedge formation on the hourly chart. This pattern would normally indicate a bullish continuation setup. However, traders are now asking the question of whether a reversal is starting. I think it’s a too early to say, because the price is not currently trending lower, it’s actually moving sideways. We need to see a break below 12385 for a more significant confirmation. So at the moment, I will continue to watch this hourly trend line break.
New breakout levels on the m5 chart
The levels I have been watching are a break above 12720 or a break below 12540. We did pierce below 12540 on Friday, but the price almost immediately reversed to remain firmly within the range. So these levels can now be replaced by the range levels from the hourly chart above. Those levels would be a break above 12720 or a break below 12465. It’s a different strategy to the trend line break above, but one that traders are watching. The RSI indicator can be a useful tool when trading in a range.
What I am watching
- The sell limit order
- Hourly Trend link break
- Range levels from the hourly chart
Dax Support & Resistance
|14 Day ATR||108.68|
|200 Day EMA||12575|