14-11-2018 DAX 30 Analysis
The DAX30 posted a slightly-bullish inside-day yesterday, closing in the bottom half of Monday’s range. This morning we have already taken out yesterday’s low and are targeting the Monday low of 297 (CFD).
The trend remains bearish with lower lows and lower highs clearly visible on the hourly chart and the trend defining level is 597. If 297 is taken out, then the trend defining level is 493. So assuming that the trend continues, traders will be looking for shorts under 493.
The Price Action
Today, we opened up inside yesterday’s value area and tested the value area high within the first five minutes. The price was quickly rejected and within the first hour of trading, we had found the value area low and broken the previous day’s low. It offers a few interesting things to watch for. Firstly, look for the value area low to provide resistance. If we take out Monday’s low, look for yesterday’s low to perhaps provide resistance.
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A mixed bag over the last few days. The set and forget signals have under-performed (see below), however I have managed to plug-in one of my trading platforms to a live stream, which is broadcast to the signals page for members which provides additional intra-day momentum signals for DAX, FTSE, DOW and EuroStoxx (see image below table).
14-11-2018 Key Levels
|Value Area High:||11430||7071||25568||3215|
|Value Area Low:||11357||7037||25354||3201|
|Camarilla Breakout (Bull)||11505||7088||25637||3223|
|Camarilla Breakout (Bear)||11323||6994||25216||3186|
European equities traded in the red in early trade today despite the United Kingdom and the European Union agreeing on the draft text of a Brexit deal, following months of negotiations. According to the agreement, the whole of the UK will remain in EU’s customs union, while a special arrangement is envisioned for Northern Ireland, which would partially remain in the bloc’s single market. Prime Minister Theresa May will hold a cabinet meeting scheduled for 3:00 pm CET today in order to secure support for her new deal.
On the data front, German GDP numbers came in earlier today, both numbers were slightly below expectations. The ZEW yesterday was slightly more pessimistic than expected too, all of which are contributing to the current bearish momentum.