Dax Technical Analysis 16/03/2016

Hello traders!

From tomorrow, I am going to start providing two reports a day. The first report will be done in the evening, I will produce a small simple report, no charts, just a few potential setups, pivot levels, bias for the day and what I am looking out for. The second report will be the normal one, produced in the morning which will include the charts and more detailed analysis.

If we completely ignore the fundamentals, I am thinking that at the moment we have an almost perfect pullback shaping up. We saw an aggressive bullish candle on Thursday last week, bursting through some key resistance, with some momentum continuing into Friday. But we are slowing down and pausing for breath. I would personally like to see a move back towards 9750 before looking to go long again.

Bears may well have a potential short setup from somewhere near current levels. We reached the daily R1 and have been rejected, that would’ve provided a decent short with a stop loss 10050. If we look at the 4 hour chart we are at the top of the Bollinger band and the Stochastic is overbought with lines crossing over, momentum on the MACD has slowed and this adds some weight to the bearish argument for the short term.

I am going to put in a buy order at 9775 but yet to decide the stop loss and take profit, it might be 200 target and 50 stop loss.

I am going to put in a sell order at 10012 with 10050 stop loss and targets of 9915 9850 and 9800.