The Dax missed 12,000 yesterday after getting as high as 11 997.5 and then 11 990 this morning. Yesterday’s candle opened at 11 784 closed at 11 979.5 meaning a gain of 195 points. This 195 point gain comes off the back of four previous consecutive bullish candles. I have pulled a study to check all the previous times similar again had happened after consecutive bullish runs. Over the last three years it only happened three other times, here they are.
Looking at the profile on the left (which begins from the major low of March 25), we can see three key levels to watch to the downside. 11 930, 11 767 and 11 706. Think of these levels as zones rather than specific price points. 11 930 held the first tag this morning. I also have three upsloping low to low trendlines with the first one having the least steep angle and the final one having the most steep angle. Price has already broken the third line and found support on the second line. I also note that between 11 767 and 11 930 there is not a large amount of volume in that zone. But the retracement seems to be low on the Dax’s agenda.
Yesterday’s auction was a series of higher highs and higher lows with barely any retracement. The price action did not take out the previous day. Control, it then broke through the previous days (during the Asian session) and kept pressing the accelerator pedal. This morning we just about tagged yesterday’s point of control at 11 930. Today will likely provide a conclusion to the 12,000 story.
|DAX KEY LEVELS|
|FDAX KEY LEVELS|
|Point of Control :||11930|
|Value Area High :||11967|
|Value Area Low :||11877|