Dax Technical Analysis 14/09/2016

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Let’s draw a line under this and move on.

Hello traders!

Yesterday we had quite a nice decline from resistance at 10550 down to support at 10350 which happened in two main stages.

The first decline bottomed out around 10425 (which just so happens to be the current price at the time of writing this article) and bounced back up to 10500. This bounce was rejected at 10500 and created a great sell opportunity which I sent out to my Dax Signal Subscribers and that took earned +76 points.

As I was typing this article into a text editor this morning, I wrote: “Today we are coiling up into a tight range, restricted by the horizontal resistance of the daily pivot (pivot point indicator) above and a rising trend line of higher lows to the downside. This wedge could also provide a decent opportunity when we break out of it. This is all visible on the 5-minute chart.”

Now, we seem to have broken out of this range, to the downside and I think there is opportunity to ride it lower. Perhaps we could see a kiss goodbye from the underside of the wedge. But it’s a continuation of the bearish movement and we are getting closer to a break down to the 10200 level.

The only bullish case that I can see is for price to bounce from the 10350 support up to the 10500-10600 zone which will almost certainly attract more selling pressure.