Hello traders!
A compact version today.
In summary, the Dax is bullish above 10375 but is in need of a pullback. We are currently in a short-term downtrend (at the time of writing we have just made a lower low) around 11535. There is a confluence of technical indicators around 11500, so this could be a good target for short-sellers.
Buyers are looking for better prices and waiting for it to come back down closer to the 11450-11475 zone.
If we assume that we are in a minor corrective phase and waiting for price to pull back, then we could look for selling opportunities. 11550 was recent support intra-day and this has broken so one of two things will probably happen. Either price presses into that level before bouncing higher, or it is a confirmed break and price can continue to find lower support. So I am looking to see if price comes back up to test the underside of that level before moving lower and whether there is a short setup emerging.
Intra-day traders can either wait for a better price to buy and follow the overall trend, or attempt to catch a wave down to the better price which of course brings its own risk being a counter-trend move.
Yesterday price reached the 11630-11680 zone, but only just. It could have been a good sell. Stop losses are now accumulating above this level. I attempted three sells, neither of which came off and led to a poor day overall. But I understand stop-losses are part of the business. As long at the logic is sound, I will accept it and move on.
It’s tricky buying a market that is overbought, but it’s even more tricky to sell a bullish market, so conditions are not ideal at the moment.
But when are they?
Dax Support & Resistance
| KEY LEVELS | |
| Daily R2 | 11692 |
| Daily R1 | 11640 |
| Daily Pivot | 11594 |
| Daily S1 | 11541 |
| Daily S2 | 11496 |
| 200 Day EMA | 10559 |
