The DAX has been selling off since Tuesday, reaching (and then reacting to) the low point from this morning around 8:00 UK time. Today my question is whether or not the price action can pull back up to the point of control from Friday, or whether it will fail and continue to move to the downside.
Using the futures chart below I have pointed out two interesting observations.
1. Whilst I was away, the price action attempted to find 12,000 and failed; falling over 500 points in a week to the current levels now. The rejection appears to be the underside of the Sept ’18 low.
2. Notice how the black downsloping high to high trendline has acted as support this morning. If the market continues to find lower prices then perhaps 11200 is possible, given the volume profile on the left.
This is the CFD price action from Friday. We have a low volume ‘pocket’ or zone up there, which may get give itself up pretty quickly if the price action wants to reach the point of control. However, as we’ve started out below the value area low, we may have some resistance up there this morning.
Similar story for futures:
I was away for the last couple of weeks, but I still continued to trade as normal. I have now updated the trading signals results page: https://thedaxtrader.co.uk/daxtrader-signals-results/
|Point of Control :||11470|
|Value Area High :||11530|
|Value Area Low :||11382|