Investors are likely to follow the trade dispute between the US and China with eagle eyes this week. They also look to London because the minister responsible for the Brexit negotiations, David Davis, surprisingly made his job available at the weekend. Chaos is expected to ensue.

Strong US labor market numbers had the Dax on Friday raised to the plus. The German stock market barometer was 0.3 percent higher at 12,496 points in the weekend. Wall Street closed positive on Friday, with Asian markets also picking up on Monday.

In the afternoon, ECB President Mario Draghi’s speech should take center stage before the Committee on Economic and Monetary Affairs of the European Parliament. 

09-07-2018 Dax Technical Analysis Video

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09-07-2018 Dax 60m chart

The fork from the three major alternating pivots provide a median line target in the 12700-12800 zone. We
We are currently in a bullish reaction leg with a series of higher lows and higher highs. Keep an eye on the wedge pattern that seems to be forming and also the gap close is in play today too.

09-07-2018 Dax 15m chart

12400 is the current low and the gap is very easy to see. The 12550 high has been pierced, so this strengthens the current bullish momentum. We are testing the highs of the day, but we still expect to see a gap close before any major progress is made to the upside (we may be wrong). Our center line set on this chart is currently dorment, but we are watching for a break below that rising MPL to signal a downside target.

09-07-2018 Dax Pivot Levels

Watch out for the two hour opening range high and low.

If the bullish momentum continues today, then the ‘Cam’ levels provide a couple of options for bulls. We can wait for a break above ‘567 and get long on a pullback or we can wait for a retracement through the gap and down to the ‘460.

09-07-2018 Dax POCs

12507 is the POC from Friday which may provide some support for buyers.

There is a low volume area directly below and the 12460 zone is another value area that may catch price action if we break towards that.