Good morning. Germany are set for a cold snap this weekend with reports of -20 degrees predicted in places. Volkswagen workers in Germany get a 4.3% wage bump (alright for some). No real update on the election saga. We also had another ‘kick the can down the road some more’ rhetoric from the FOMC minutes “Fed officials saw increased economic growth and an uptick in inflation as justification to continue raising interest rates gradually, according to the minutes.”
Mersch speaks today. We have UK GDP numbers (year on year). European Central Bank (ECB) Monetary Policy Meeting Accounts later as well. There is also important Canadian and Japanese releases. Oil will be interesting today as well. Watch the crude oil stocks numbers.
22-02-2018 DAX Analysis
Looking at the big picture, the Dax is moving in a relatively wide range. The TPO below will show the range a little clearer.
But believe it or not, but the swings are technically still favouring the bulls. The most important observation at the moment is the recent high, which failed to take out the previous high. This can suggest a turning point. So if the 12333 level goes, then the 12275 level is the defining line to watch as this is the second swing back. Once the second swing back is taken out, you can conclude that something is changing.
Buyers and sellers will be watching these two levels closely. It’s likely that there will be a battle there, so let’s see who wins.
Dax TPO
22-02-2018 Dax Trades
Yesterday these two options were posted in the Premium channel, both of which were shorts and both of which were over 3:1 reward. The second option turned out to be a nice trade for many traders.
Dax Trade Signals
Dax Trade Signals
22-02-2018 DAX Trading Strategy
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We have these sell spots for shorts. We may want to be careful around 12275
Short the undersides of these black lines
1 – Wait for the gap close and then short the underside of the up sloping black line
2 – Be careful of the lower black line, this may be a trend barrier and we also have 12275 horizontal support as the trend defining level.
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