The intensified trade dispute between the US and China on Thursday severely damaged the Dax (DAX 30) and weighed heavily on the auto industry in particular. There were a number of disappointing company numbers yesterday including Siemens and Continental. Despite BMW being strong, the overall tensions between the US and China continued to worry the markets.
Yesterday’s price action was aggressive and bearish. We formed a ‘b’ profile with the majority of price action in the lower half of the trading range, however, the price action managed to close above the value area high. This will encourage bulls, especially as the ‘455 level was not threatened and therefore we remain bullish above this.
We tagged the major median line, which I called yesterday, so there is potential for price to stop and reverse here. We do however have a significant bearish ACR line set forming which could be worth noting on the charts.
The strategy I am currently using is the Ebands strategy, available on the forum [for members].
03-08-2018 Dax Key Levels
|KEY LEVELS (MINI DAX)|
|Value Area High||12563|
|Value Area Low||12497|
|Camarilla Breakout (Bull)||12712|
|Camarilla Breakout (Bear)||12482|
*These are futures numbers and are from yesterday