Dax Outlook & Market Summary 18/11/2014

Dax Currently: Bullish

Resistance: 9465 (Daily R2 and previous high) and 9440 (second high)

Support: 9400 (psychological level), 9389 (daily R1)

Final Dax Technical Analysis and Market Summary

Big bull day today, we took out the daily R2 today, we took out the previous high and we have had two back-to-back bull days. The recent pattern suggests that the opposite will happen tomorrow, perhaps even Thursday as well. If was pushed to make a prediction, then I would like to say we gap open higher tomorrow morning, close the gap fairly early, fall towards a close around 9350, but let’s see.

It will be interesting to watch where we close tonight, if we close above 9465 then consolidation looks like it is finished for now.

I haven’t paid much attention to the news or the equities today, so again haven’t followed the cash index and just played the technicals.

The volume profile has created a few pockets on its way up today, tomorrow those may be exploited so I will keep my eyes on those.

Overall I think a few people may have been surprised today by the reactions in the market, I think someone on my twitter may have even laughed at the thought of 9400 holding, but it just goes to show that the Dax does what it wants to, not what people think it should.

Midday Market Update

Still bullish on the Dax with the 9400 level being tested a couple of times and holding, but still can not breach the 9435 level, again. Today and yesterday seem strangely similar to 5/11 and 6/11 which is interesting so I will keep an eye on that as well as the NY open. The second bull day

The daily R2 is the cap for today I think, providing we can actually break the 9435. Not sure how much further we can go for the rest of the day and suspect a pullback in the afternoon towards the vwap (currently at 9350)

Current Dax trade: Long @ 9320 with SL moved to 9395

Other markets

Gold has broken out and retested the previous resistance, it tested its new support and was rejected but is now hovering and looking to test it again. I entered a long trade @ 1195.6

EURUSD gave me a candlestick signal on the hourly which I traded short @ 1.25295. Not thrilled with this one, but i’ve gone for a 30 pip SL and 75 pip TP

SPX still out there too.
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Major Market Outlook Video (Dax, Ftse, SPX, Gold)

We have broken out of the emerging triangle pattern and seem to be heading north today, making two bullish daily candles back to back. The move suggests an end to the recent consolidation and perhaps the market is now ready to commit to a direction.

We burst through the 9400 and this levels seem to have become support.

It is unlikely that we trade much beyond 9465 today and tomorrow is likely that we have a pullback before continuing much higher as we haven’t seen three bullish candles back to back for a long time.

My strategy intra-day today would be to buy dips and avoid selling, but as I already have an open position I won’t be trading intra-day.
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