25-05-2018 Dax FTSE Dow Technical Analysis

Good morning traders, we witnessed a break of the major levels on the DAX30 yesterday so now we try to make sense of the price action. On the news front, we saw some interesting headlines, such the Germany/China cooperation on the Iran nuclear agreement. Iran want EU compensation for the US withdrawal from nuclear deal. China continues to back the Euro by suggesting they will continue purchasing Euro debt.  There were increased geopolitical risks from the cancelling of the US/N. Korea summit and this was likely the main reason for the Dax being one of the worst performers during the day. But NK are still willing to talk to the US. And even China have said that Trump is willing to speak to NK. The media are making it out to be a childish spectacle, which doesn’t surprise me. 

[special_heading title=”DaxTrader Resources” subtitle=”Useful tools to help your analysis” heading=”h2″ centered=”true” _fw_coder=”aggressive” __fw_editor_shortcodes_id=”c19793332478db314a3711fea645b3cd”][/special_heading] 

[special_heading title=”25-05-2018 Dax Analysis” subtitle=”DAX30, FDAX, FDXM, GER30, DAX” heading=”h2″ centered=”true” _fw_coder=”aggressive” __fw_editor_shortcodes_id=”49304579c8c1edeef58d2410adc73324″][/special_heading]

• DAX30 has broken below the 12915 major swing low
• The break of major swing levels signals the end of the previous bullish trend
• The DAX30 broke through the ML of the fork without pulling back and then took out the LMLH
• 12970-12990 is a balance point, so we are expecting traders to find value there
• It’s likely that the price action will consolidate and digest the activity from yesterday
• If we manage to find a way back above 13000, then this recent activity will appear more like a dip
• However this bearish wave is significant, many traders could be trapped long
• We have posted an idea on this page: https://thedaxtrader.co.uk/todays-trading-ideas/

[special_heading title=”24-05-2018 FTSE Analysis” subtitle=”FTSE, UK100, FTSE100″ heading=”h2″ centered=”true” _fw_coder=”aggressive” __fw_editor_shortcodes_id=”990bc6ec7b2627b5d71ebf17e6eeca9b”][/special_heading]

• BULLISH TREND OVER – for now
• The FTSE has broken through the major trend defining low and the centre line on this ACR line set
• We are watching for to see if we get a reaction on the lower line
• The comparative size of the bearish leg down suggests it is a major bearish impulse leg, which often starts a new trend
• In the middle of that bearish leg down, there is a sign of a ZigZag, which suggests a potential balance point
• Yesterday in the article (click here) we discussed an outside bar forming, which did turn out to be interesting
• We are expecting a reaction leg (retracement), but a break below the major low will render that idea useless

[special_heading title=”25-05-2018 DOW Analysis” subtitle=”US30, DJI, DJIA, YM” heading=”h2″ centered=”true” _fw_coder=”aggressive” __fw_editor_shortcodes_id=”4f9612b5652304d9ce23b38e99135892″][/special_heading] 

• Still ugly price action formation with no clear technical trend
• 24625-24650 is becoming a very strong level of support – holding on after yet another test yesterday
• Breaking above 24881 can open up a move towards 25000
• The minor trends are chaotic at the moment, so we need a catalyst to break this mess

DaxTrader Signal Performance 

Allow up to 30 seconds for this to load