Dax Technical Analysis 31/07/2017

Dax Outlook

The longer term technical trend for the DAX is bearish below 12675 and short term bearish below 12350, so trend traders will be looking for opportunities to get short. The current price for the DAX may not suitable for finding a new short entry as the reward to risk ratio is not good. Counter trend traders are currently looking for a retracement from the lows of last week to target a test of the 12330-350 zone.

12,000 is still a big target for many traders.

Dax Video

Unfortunately, the audio is behind the video on this one. So the presentation is about 10-15 seconds in front.

Dax Strategies

Bullish

We are trading around the low of the month and have nearly reached our measured move to the downside. The next target to the downside is 12,000, so the opportunity to buy seems stronger.So a test of the monthly low could offer the best buying spots.

Alternatively, if we get the strength to break through the IB and hold it, perhaps a retracement to vwap can open up a buying opportunity. Targets of 12320 could be interesting.

Bearish

We have already recently completed a decent bearish leg lower, so selling from here is ‘selling low’. A pullback to higher prices would be more prudent. Perhaps a test of the Wednesday highs around 340 would be best.

Alternatively, a break below the IB and pull back towards vwap could open up a trade down towards the 12000-12025 zone, but just be aware of the lower than expected reward: risk

Dax Charts

03 5m Chart - Dax Technical Analysis
03 5m Chart – Dax Technical Analysis
01 Daily Chart - Dax Technical Analysis
01 Daily Chart – Dax Technical Analysis
02 4 Hourly Chart - Dax Technical Analysis
02 4 Hourly Chart – Dax Technical Analysis