Dax Technical Analysis 30/11/2016


Hello traders

I have been out of the office for most of the day, so have not had the opportunity to write, so it’s a shorter article today. No charts

The daily chart recently saw a bearish Marabuzo candle, I was looking out for a 50% retracement with a possible sell opportunity. This hasn’t worked out because price this morning continued to rally and instead we reached just short of 10700 today. On the bigger picture, we are still trapped inside the large range. It’s still bearish below 10830 and strengthens the longer term view if we close today under 10670.

On the H4 chart the oscillator has now tested the oversold zone and price reached the lower Bollinger band, creeping just inside the 0.382 retracement from the November swing. If we continue to be bearish, I think the 10425-10500 zone could still be seen.

On the H1 chart we are now comfortably back inside the smaller, more recent range after testing range support yesterday. It’s possible that the piercing of the range support yesterday would have trapped many traders who opened a short position expecting for price to continue to fall, looking to squeeze those traders out.

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Support & Resistance

Daily R210711
Daily R110667
Daily Pivot10603
Daily S110559
Daily S210494
200 Day EMA10365

See you again tomorrow