Good morning traders, here’s the Monday briefing. Germany and France urge Russia to pressure Syria for immediate ceasefire. Germany are defeated by Russia in the final of the men’s ice hockey (after Germany knocked out Canada – the champions – in the semi final). Merkle appoints Jens Spahn to her cabinet, despite him being an outspoken critic. What’s that saying about keeping your friends close, but your enemies closer? Perhaps it’s a strategic move to cool the conflict within the party. Chinese Billionaire Li Shufu becomes Daimler’s largest single shareholder by taking a 10% stake in the Mercedes-Benz maker. And Volkswagen has risen from the ashes and posted strong 2017 results, despite the Diesel scandal.
Regarding the economic calendar watch out for Draghi’s speech around 2pm UK time as this could provide some volatility. Coeure is also speaking around 10am and at 3pm we see the US New Home Sales.
Dax Technical Analysis
I am using a 2500 tick chart here to show both the major and the minor swings. I believe that enough time has passed now, since the ‘crash’, to start removing that from the chart.
So here I have labelled the majors in black and the minors in blue. The most recent black swing is now a confirmed swing low, because this morning we already took out the previous high. Using the three most recent pivots we can draw an Andrew’s Pitchfork and this presents us with a potential median line target, according to Andrew’s rules. We talk about Andrew’s rules a lot in the Premium webinars.
The majors are printing higher highs and higher lows, therefore we are bullish above 12280. That’s the major trend-defining level at the moment. The minor swings (blue) are also bullish and printing higher highs and higher lows. The minor trend-defining level here is 12432.
On the TPO we see a number of exposed POCs (points of control). As price gets closer to these levels, they can often attract price. They were previous areas of high volume where price was balanced and fairly valued. As price moves from price discovery to find a new value area, it will often test these levels on the way.
26-02-2018 Dax Trading Strategy
Member’s can see the 26-02-2018 Dax Trading Strategy on this page here.
26-02-2018 Dax Key Levels