Good morning traders, it’s Tuesday the 18th of February and time for today’s German DAX 30 analysis. We’ve already seen a decent gap lower this morning, with a continuation move to the downside having broken the trend defining level mentioned yesterday. Does that mean it’s bearish from here? Possibly, or maybe it’s just winding up for another run at 14k.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 get to a session high of 13797 and a session low of 13742 giving us a range of just 55 points and ended up 27 points higher on the day. When you compare that range to the average daily range of 166, you can see we were 111 points below the average clearly implying a slow session. And as we know, slow sessions are better suited to range trading. Unfortunately for us, as we’ve said many times before, range trading is not great for our DAX trading strategy. So I found no opportunities yesterday.
DAX 30 Bias
The German stock market index is currently trendless, showing a progressive series of higher highs and higher lows. The trend defining level is currently 13700, so the market remains bullish above that level. In order for the market to remain bullish, we need to take out 13797. I will again be looking to use the DAX trading strategy to provide some useful setups today.
DAX 30 Levels To Watch
Moving on to the key levels to watch today, watch out for the previous session Point of Control (POC) at 13759. Today’s initial balance is between 13639 and 13718, so watch for a momentum break of either of those two levels. The value area high is currently 13773 and the value area low is currently 13747. Here are some more levels to watch out for:
- The 5 EMA (Daily): 13697
- The 8 EMA (Daily): 13511
- The 50 EMA (Daily): 13850
- The 200 EMA (Daily): 13680
- The Daily Pivot: 13771
- The Daily R2: 13826
- The Daily S2: 13716
To keep up with the economic calendar and the latest price action, click this link to open up the DAX chart.
Sign up for DAX trading signals and learn how to get access to the trading strategy for yourself. Getting a signal is great, but learning how to trade the strategy is much better.