Share this post
Morning traders and welcome to the 31-01-2019 DAX Technical Analysis. Yesterday we had some strong earnings per share numbers from the big US companies: Boeing delivered 5.48 vs 4.57. Facebook 2.38 vs 2.18. McDonalds 1.97 vs 1.89. Microsoft 1.10 vs 1.09. PayPal 0.69 vs 0.67 with many others mostly hitting expectations. Boeing was the main release which sent the DOW Jones into the sky. In other news, the ADP numbers came in hotter than expected 213k vs 180k so that will provide a clue for NFP tomorrow and the Fed decided to keep rates unchanged at 2.50%.
31-01-2019 Outlook
As for today, we have the German Unemployment Change numbers, Canadian GDP from November and the US New Home Sales numbers from November. Check the economic calendar for more information there.
Regarding the earnings releases, we have Amazon and Mastercard out today along with many other companies.
31-01-2019 Dax Analysis
For the last four days the DAX has been carving out a range between 11131 and 11325, with three consecutive, balanced, doji/spinning top candles. The candle type is only important to me because it demonstrates that price has found some value here. So once we break out of this zone, which we will, it’s likely that price will want to return to this zone. Here is the daily chart showing the zone to which I am referring.
The black swing markers on the chart below show the continued bullish ‘relief rally’ from the major low of December. I should correct myself, because this is not really a relief rally, this is a major ‘reaction wave’. Within that reaction wave we can see the series of higher highs and higher lows and for me, these are the minor swings.
The DAX remains bullish above 11,005.
I was expecting for price to test that 11067-11091 zone yesterday, after piercing the 11159 low, but the market rejected lower prices. Now we are trading in what could be described as a large Bull Flag, or channel and threatening to break through the top as I write the article.
Yesterday I sent out an earlier version of this chart with a message describing the downsloping ACR line set (the trio of lines). I was expecting for price to go and reach the upper ‘reaction’ line, which at the time was at the point of control. We can see now that price achieved both goals. It tagged the reaction line, and then broke the ACR line set, kissed it goodbye and continued up to the point of control. In the video above I also describe how this line set can be turned into a pitch fork. When we use that pitchfork, we can see how the price reachied the median line and another set of fork lines could be drawn.
The profile from Tuesday was very much normally distributed, perhaps this explains why price returned back there. And today is much the same with another normally distributed profile.
DAX Daily
MACD | 91.98 | BUY |
RSI | 71.11 | BUY |
Stochastic | 94.06 | BUY |
ADX | 18.93 | NEUTRAL |
CCI | 97.05 | NEUTRAL |
Aroon | 64.28 | BUY |
Alligator | 10843.06 | BUY |
Awesome Oscillator | 354.19 | BUY |
Parabolic | 11131.5 | BUY |
SuperTrend | 10999.29 | BUY |
OVERALL | BUY |
DAX Hourly
MACD | 5.16 | BUY |
RSI | 62.98 | BUY |
Stochastic | 96.6 | BUY |
ADX | 18.63 | NEUTRAL |
CCI | 236.27 | BUY |
Aroon | 50 | BUY |
Alligator | 11201.89 | NEUTRAL |
Awesome Oscillator | 9.64 | NEUTRAL |
Parabolic | 11143.71 | BUY |
SuperTrend | 11148.34 | BUY |
OVERALL | BUY |
31-01-2019 Key Levels
DAX | |
Point of Control : | 11190 |
Value Area High : | 11207 |
Value Area Low : | 11168 |
VWAP : | 11187 |
R2 : | 11296 |
S2 : | 11088 |
Pivot : | 11192 |
Camarilla Breakout (Bull) | 11267 |
Camarilla Breakout (Bear) | 11153 |
Share this post
Be A Better, More Disciplined Trader
Thousands of traders use TheDaxTrader.co.uk to assist their technical analysis and many of those traders become full members of the site and enjoy remarkable improvements in their results.
We believe in sharing the very best techniques, tools and strategies with you so you can make that leap to trading full-time and building your trading business with like-minded professionals.
Additional Links
Lot Size Calculator
A useful tool to help you manage your risk when you are planning to open a position.
DAX News Feed
A page collecting the useful news stories coming from the mother-land of Germany.
Dashboard
A page collecting the useful news stories coming from the mother-land of Germany.
MY TRADING HISTORY
https://thedaxtrader.co.uk/daxtrader-signals-results/
POSITION SIZE CALCULATOR
https://thedaxtrader.co.uk/calculator.html
DAX NEWS
https://thedaxtrader.co.uk/dax-news-feed/
TRADING ACADEMY
https://thedaxtrader.co.uk/daxtrader-academy/
THE DAX STRATEGY
https://thedaxtrader.co.uk/dax-trading-strategy/
THE DAX LIVE ROOM
https://thedaxtrader.co.uk/live-trading-room/
FREE SWING TRADING BIBLE
https://thedaxtrader.co.uk/swing-trading-bible/
FREE TELEGRAM CHANNEL
https://t.me/DaxTraderChannel
ABOUT MEMBERSHIP HERE
https://thedaxtrader.co.uk/daxtrader-membership/
ECONOMIC CALENDAR
https://thedaxtrader.co.uk/economic-calendar/
LIVE DAX CHART
https://thedaxtrader.co.uk/dax-chart-interactive/