Dax Technical Analysis 30/06/2015

[success]The automatic trader has been switched back on for part 2![/success] [success]My first binary signal was traded and won[/success]

Good morning traders!

What a strange day for trading, a massive win for the bears with an incredible gap lower on open and we failed to really claw back the loss. We attempted to, and made a strong case for a retrace, but once again got hammered lower to close around the 11k mark with one of the single largest daily candles I’ve ever seen on the Dax.

In hindsight, I am very pleased I closed my trades. Congratulations to those who were short, commiserations to those who were long. I am looking for an opportunity to buy but it seems the opportunity may be tricky for now. I have decided to not trade today either so I will be watching from the sidelines once more.

Thousands of Greeks have turning out for a no rally and Tsipras has said “Having asphyxiated banks & denied extension request, is it reasonable to expect that IMF installment will be paid tomorrow?” Basically admitting that the IMF will not be paid today. How much more reaction can we expect?

Trade carefully! I am not trading at all for the moment. Let’s look at some charts below.

Dax Support & Resistance

Daily R211747
Daily R111362
Daily Pivot11135
200 Day EMA10859
Daily S110750
Daily S210523

Dax Charts

The weight of this candle is interesting as it may well carry some momentum into tomorrow. So often the candle from Monday dictates the movement for the rest of the week. We are asking questions of the 10850 support zone and one again testing the 200 EMA.

Dax Daily Chart
Dax Daily Chart

We are continuing the bearish move after a bounce from the upper trend line. I am watching for a break below the previous support, a break out of the trend channel to the downside or a bounce from the lower trend line.

Dax Intra-day Chart (4 hour)
Dax Intra-day Chart (4 hour)

We already knocked on the door of the weekly S2 which is not normal for a Monday. The momentum seems heavily bearish and the fundamentals currently support the bearish case.

Dax Intra-day Chart (30 minute)
Dax Intra-day Chart (30 minute)

So we touched the daily S4 almost perfectly, then retraced perfectly back up to the daily S2 which also aligned with the 618 fib, before continuing the selloff and nearly closing at the opening low for the day. A strongly bearish signal.

Dax Intra-day Chart (5 minute)
Dax Intra-day Chart (5 minute)