Dax Technical Analysis 06/09/2016

Hello traders!

The market has not been very exciting today, in fact I would say it has been pretty boring! There was a bit of a scare to the bulls around 9am with a sharp sell off, suspiciously looking like a stop loss sweep, but it managed to hold above the daily S1 (pivot point indicator). I was originally looking for a pullback to 10650 to trigger a long. I actually opened a new trade to go long from around 10680, but eventually closed out as I watched to see if it would drop further. We’ve recovered from the drop early this morning and are currently (at the time of writing) hovering around the daily pivot.

So what next? Drawing a box around recent price action, we need to see a break above the daily high of 10722 to open up the door to a test of yesterday’s high and further on towards 10800. A break below the daily S1 opens up a move down to 10625. I still feel that there is plenty of support down here, unless something unexpected hits the market. But it seems the market is currently happy to move sideways until it gets to that pullback zone and bulls step back in.

I am currently flat, I have no open trades, but my bias is still bullish, based on the daily chart being bullish above 10450.

So today is a waiting game

Dax Support & Resistance