Dax Technical Analysis 16/09/2016

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Hello Traders!

Interesting 30 minute candle on Dax around the weekly S2 (pivot point indicator) with bullish divergence on the oscillators (see little image below)

Possible Signal

We have been struggling top break below the 10350 floor for the last few days and I was beginning to wonder when it might happen, but as I started typing the article out, it broke. So just like that, we are now below 10350 and looking for the next layer of support. I can see the current price of 10320 providing some potential support (24/6 pre-brexit high) and if this goes then 10280, the daily S2 (pivot point indicator) could slow us down.

As far as targets to the downside are concerned, if this bearish move continues, I have marked out a zone of 10050-10200 as a potential area for a reversal. I say this because 10050 is approximately the 50% Fib retracement of the June-Aug swing and 10211 is the 200 EMA. So I am expecting price to test the 200 EMA, pierce it, but get held up by the August 3rd low and the Fib retracement area. I like the idea of a bounce from this zone, back toward 10500.

[warning]HUGE move lower!!![/warning]

It seems the banks are having a bad day today, perhaps the EU summit is also having some influence, but ultimately, this has confirmed the break below 10350 support and we accelerate on our way towards the targets I mentioned. 10250 is holding nicely, in fact we have bounced 50 points already, just as I am still typing.

A short from 10350 could be interesting. However the 30 minute chart is producing a fairly compelling candle with a spike in both volume and volatility, so is this an indication of bulls beginning to step back in? I will wait for the candle to complete and keep an eye on the reaction around 10350-10375.

The 10250 is around the weekly S2, so I just wonder how much further downside we will see today.

Nice Renko trade captured +107 points earlier!! It missed the