(This article was actually typed at around 9am, but I must have closed the laptop lid, before it finished uploading/publishing)

Good morning traders!

The Bullish trend on the Dax remains dynamic, and there are currently no signs of a stronger profit-taking scenario or even a negative trend reversal. Taking advantage of the remaining technical potential by the end of December 2016 at 11,430 points should, therefore, remain on the agenda.

Is demand starting to fall away? Is the air gradually becoming thinner up here and has the “Christmas rally” already been anticipated to a large extent? It’s difficult to say, but I am still looking for 11430. From my experience, I usually find that Friday can be unusual for trading and can often offer a pause from the trend.

Short-term we are bullish above 10335 and need to take out 10400 to continue the trend. We are still consolidating on the smaller time frames, 10360 seems to have held price so far. At the time of writing, we put in a tweezer formation on the 5m chart and this could be seen as a buying signal. The problem is, as I mentioned earlier, that we are already so high, it’s difficult to find demand here.

I may have to start looking at other markets for opportunities because this month has been slow. I have two limit orders still open, which I will keep for now.

I suspect that volume may begin to drop off over the next week or two, so we may need to decide when to stop trading and think about January. I hear Christmas can be a good time to spend with friends and family, I may try to actually do that.

Dax Support & Resistance

Daily R2 11500
Daily R1 11436
Daily Pivot 11335
Daily S1 11271
Daily S2 11169
200 Day EMA 11442

No charts today