27-09-2018 Dax 30 Analysis

Dax 30 Analysis

Before we look at the DAX 30 technical analysis for today, let’s review the news. The U.S. Federal Reserve raised interest rates on Wednesday and left intact its plans to steadily tighten monetary policy, as it forecast that the U.S. economy would enjoy at least three more years of growth. Wednesday’s rate increase once again drew criticism from President Donald Trump, who has complained that the Fed’s actions are countering his efforts to boost the economy.

“I’d rather pay down debt or do other things, create more jobs. So I’m worried about the fact that they seem to like raising interest rates.”

From the newswires: Deutsche Bank has dismissed speculation that it might seek a merger as “fiction”, after media reports suggested Germany’s biggest lender might seek tie ups with Switzerland’s UBS or German peer Commerzbank. German institutes warn of recession if trade conflict escalates. Any escalation of trade friction involving the United States could cause a major recession in Germany and Europe. Germany and Saudi Arabia have agreed to end a prolonged diplomatic row that prompted the kingdom to pull its ambassador from Berlin and punish German firms operating in the country.

27-09-2018 Dax 30 Analysis Snapshot

27-09-2018 Dax 30 Analysis

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27-09-2018 Dax Outlook

We are currently strengthening the support around 12,300. Failure to break this support today will only add to the bullish case. 

The market is currently ranging, so a buy low and sell high strategy has been working very well recently. 

Breaking the 300 opens up a move to the bottom of the low volume area (visible on the 10m chart below)

27-09-2018 Dax Daily Chart

  • Bearish major swing channel
  • Currently at the major channel resistance
  • Struggling to break 300, which could be a key level to determine future direction
  • The studies at the at the bottom of the chart are a combination of range indicators and delta indicators

27-09-2018 Dax 10m Chart

  • Composite market profile shows the data from the entire Bullish Reaction wave
  • Creating a double distribution with the recent trading range
  • Low volume area shaded below is an interesting one to watch for trading opportunities

27-09-2018 Dax Volume Scanner

Interesting sell signal this morning, offered 4:1 and the trailing stop would be 280, so a good start to that move.