Dax Technical Analysis 01-06-2017

Good morning traders, it’s officially the start of Summer (to me) as we are now on the 1st of June! Let’s jump to the charts and take a look at the Dax technical analysis 01-06-2017.

But before I get started, I just wanted to remind all those who purchased three months of signals at the end of Feb, beginning of March. The subscription would now have expired. You will need to renew your 3-month subscription using this link here or you can subscribe as a regular monthly subscriber here.

Dax Daily Chart

The daily chart below is now beginning to show signs of rejecting this emerging head and shoulders pattern. With the high of 12709 yesterday, we tested the range resistance and today we continue to head higher. So perhaps a break through this resistance 12725+, suggests that this emerging technical pattern is void. The bullish trend channel would be the next potential level of resistance, should we break through the range. Beyond the trend channel resistance, we have the all-time highs.

Daily Chart

Dax Hourly Chart

There are two technical patterns fighting each other here. We have the range resistance directly above, between 12700-12725. We also have this [tenuous] rising channel. Yesterday we tagged the resistance after an aggressive buying move and the price was rejected. The price retreated almost as quickly as it gained. However the trend support is currently holding price. The channel was formed after I took a parallel from the original trend line from May.

A break above the resistance opens up the potential for a move towards 12835. A break below the trend channel suggests either continued sideways action or a move towards 12500.

Is it likely that we get a 2000 point drop? I think it’s very unlikely, not impossible, just very unlikely.

Hourly Chart – Dax Technical Analysis

A bizarre trading day yesterday. I was watching the market for most of the session and speaking with other traders who were trading it higher and lower, and then they were certain one minute, but uncertain the next, making 30-40 trades. I was getting exhausted just listening to them. But I decided to remain patient because in the grand scheme of things, we haven’t gone anywhere.

Most notable is the piercing of the Bollinger band from yesterday, which was also at the same time as a bearish divergence signal and touching range resistance. Three pretty compelling technical signals. A re-entry back through the Bollinger band (in hindsight) was a great signal, taking profits near to the midline. The midline acted as support and price jumped again, piercing the Bollinger band for a second/third time and a short from here would also have been a great signal.

I was building an expert advisor to take advantage of these situations, but sometimes, they still require a little manual intervention, as do many great systems.

m5 Chart – Dax Technical Analysis

Double Top

I am in the process of sharing all the training/knowledge I have gained over the last few years, in a series of articles. It will take a little while to complete. But one of the articles was regarding the Double Top setup. This is an example that happened fairly recently (below). I find it interesting how price has reacted to the original signal entry on this chart at 12667. It’s also a textbook example of support becoming resistance.

I will keep you updated regarding the articles.

Double Top

Dax Support & Resistance