Yesterday the DAX index broke above 13,303. The market reached a high of 13,367 and as a result, the monthly composite profile started to form a more neutral looking distribution.

However, there was a rejection of higher pricing. The DAX continued to react by retracing nearly all of the gains for the day. You could blame the trade wars, you could blame the economic releases, but the truth is that these things are all distractions. Price action is always a king and in technical analysis that’s really all that matters.

DAX Analysis from the 60-minute chart

Today we have broken below the recent ‘range support’ floor. This support floor was around 13,120 and had been strengthened recently with multiple touches. Questions now how much further. The previous trend of finding level was 13,095, and at the time of writing this article price action was about to test that level. If we break below the level, then the door is open to a 13,000 retracement.

Perhaps this could be the start of the much-needed correction on the market. If you are one of the buyers that are trapped up there at 13,350, then you have a serious decision to make. Because of the market continues to move lower, then you will be hating life. My advice is: always use a stop loss.

In the webinar this morning we talked about how we had a 241 point rally. The rally was from the recent support floor up to the high from yesterday. Now we are breaking through the support you, which you can argue is a form of head and shoulders pattern. Could this open up at 241 point reverse move to the downside? If so, 13,000 will be broken down and the target would be nearer 12,900.

20-11-2019 60 minute dax analysis

DAX Analysis from the 10-minute chart

In the short term we have a continuous series of lower lows and lower highs, and at the time of writing the current trend defining lower high is 13,132. We have an exposed point of control up at 13,211, but right now that looks less likely to be achieved unless we put in a low of the day fairly soon.

20-11-2019 10 minute dax analysis

DAX Trading Signals

The Dax trading strategy managed to provide multiple valid trading signals yesterday. At the beginning of the session the market was the bullish, and by signals were from around 220. The signal that I sent out was a long from 231, targeting 285. This signal hit the target for a 4% gain to the account. Around 1 pm yesterday afternoon I sent a message to the signals channel saying that there were opportunities to get short. The opportunities came from the trading strategy. I said I was not looking to get short, however if you guys wanted to this is the spot to get in.

From here on the market tanked 150 points, so congratulations to those of you that took that. If you would like more information about the DAX trading strategy, get on the website or send me a message on Telegram.

DAX Key Levels

MethodPrice
VWAP13265
Point of Control13211
Value Area High13312
Value Area Low13166
Pivot13242
R213444
S213041
20-11-2019 key levels

DAX Analysis Webinar Video Recording

Watch 20-11-2019 DAX Technical Analysis Webinar – The DAX Trading Strategy caught longs and shorts yesterday from thedaxtrader on www.twitch.tv