Current Bias: Sideways and trapped
Resistance: 9956, 10,000 (key resistance)
Support: 9926, 9915, 9873, 9862[wp_ad_camp_3]
Boring day for the trend trader. Nothing to follow today.
Clean day for range trader today, lots of points on the table with the only problem being the emerging wedge pattern which is narrow the range opportunities.
I don’t really have much of a short-term bias, I am just waiting for Thursday and looking at other markets temporarily.[wp_ad_camp_1]
As eyes turn to Thursday, volatility and price are expected to slow down in the days building up. We are still hovering very closely to a key psychological level and further euro weakness may push the Dax over that level this week. We had two attempts at it last week, much to my surprise, but we were unable to take the level down.
We are currently trapped between the 10k level and the high made in September, and we have been trapped there since Wednesday evening.
I think that range trading may be the best way to play these moves and then trade the breakouts when it happens.[wp_ad_camp_3]
It is possible that we can continue this recent surge and break through the 10k level, making progress on our way to 10250. The reason I say this is that the Dax does not always do what the SPX does and whilst the American counterpart is currently struggling and threatening a reversal, the Dax is not quite ready to follow. The dollar is gaining strength and the indices are generally inversely correlated, but the Euro is not quite showing signs of the same strength, especially with the QE high on the agenda of many currency speculators.
Dax Technical Analysis[wp_ad_camp_1]