30-10-2017 Dax Technical Analysis

Good morning traders and welcome to the 30-10-2017 Dax Technical Analysis.

First things first, tomorrow is German Reformation day and this means a public holiday and the Dax will not be open for trading. Therefore there will be no article tomorrow.

What a great week for the Dax last week, well, for some anyway. We finally saw the break of the trend defining levels and as a result, we continued to trend higher. It’s very difficult to predict when these kinds of moves happen, so it’s best to stick to the basics and follow the swings. The basics told us that; despite a break in the triangle formation (to the downside), the price did not break the 12909 support level.

So this level still remains the trend defining low. We have now broken to new highs, so any retracement from current levels is now likely to be the new trend defining low, assuming that we continue to print higher highs.

So let’s have a look at the charts.

30-10-2017 Dax Outlook

Bulls

The trend defining level is intact so the trend is favouring the buyers.

Opportunity is most likely in the form of a pullback to previous consolidation levels, therefore:

13160

13045

Bears

Surely a pullback is the most likely outcome, especially if the buyers believe that value can be found at lower levels, so a fade opportunity comes from the previous high or R1.

13245

13260

30-10-2017 Dax Video

No video today.

30-10-2017 Dax Technical Analysis

Dax 10 Minute Chart

• We broke below the fork lower median line parallel but found support at the trend defining low
• The price rallied through the entire fork and broke out the top of the upper median line parallel
• The two shaded areas are potential pullback zones of interest

Dax Daily TPO

• The entire candle body was above Thursday with the value area being in the top half
• We have an exposed POC from Thursday (blue line) around 13160
• The Thursday profile is very jagged and unusual, so break inside that could create strange price action behaviour

Dax 2500 Tick Chart

• Each horizontal pair of lines represents a day of trading and relates to the IB for that day
• The arrow points to Thursday’s break above the IB (opening range) which presented a good trading opportunity
• Friday was a very different story, with a contained range inside the IB

30-10-2017 Dax Key Levels

KEY LEVELS
POC	13214
Value Area High	13235
Value Area Low	13220
14 Day ATR	93.37
200 EMA	12257
Daily R2	13302
Daily R1	13260
Daily Pivot	13209
Daily S1	13167
Daily S2	13117
*Please be aware that FXCM can often be 5-10 points higher than futures prices