Dax Technical Analysis 09/08/2016

Good morning traders

Thank you for my birthday messages yesterday!

I found this fruit on my travels, it’s a sweet fruit with a delicious chewy fruit surrounding a pip. You eat the fruit around the pip, which falls off the pip really easily, I really could eat 5/6 of these a day. So cheap too!

Any idea what it’s called?

Balinese Fruit

Dax Technical Analysis

Bulls we be pleased to see that yesterday we closed above the recent highs, continuing the build on the momentum from Friday and are now only around 50 points behind the April high. With four bullish daily candles in a row, it looks to be a decent attempt to break out. It started to look like the previous highs were rejecting price, but the 200 EMA has provided support and if we hold this, there is a decent setup forming. Longer term targets range between 10800-11275. A break through 10500 can open up a move towards 10650/10675, that would be an interesting spot. Bulls that are not already long might be looking for a dip, 10380 could be considered a spot. The trend is bullish above 10175.

Bears have taken a knock over the last few days, but are still eyeing a rejection of the 10485 highs. Beyond this, it starts to look pretty bleak and opportunities to short might be limited to a pullback, targeting the usual Fibonacci retracement levels, which is the contrarian style of trading, going against the trend. A break below 10400 is interesting for bears and a target zone of 10300-10330 would be popular.

I mentioned yesterday that I am not holding a position, if I had to choose one, I was favouring the bearish side. If 10500 goes and holds, assuming it’s not a fake break, I’d have to accept I was wrong.