Good morning traders!

  • Dax is still technically bullish but still struggling to break 10,000
  • Bullish momentum slowing with short setups beginning to look attractive
  • Market has now digested the ECB surprise and the dovish Fed
  • Pressure to continue on the Euro, especially the yields
  • General retail sentiment is very bearish, so prices could still move higher in the short term

From a low leverage, swing trade perspective, shorting from current levels (or a gap higher in the morning) could be interesting with a stop around 10175 and target of 9550 based on us approaching the 200 day EMA, still failing to take out the 50% retracement level from the Dec/Feb swing and previous resistance from January. The 14 period daily Average True Range is around 215 points, so trade would offer an attractive risk:reward ratio.

Day traders and intra-day traders would probably do well to avoid the market right now, because the there is no clear trend to follow and the range is currently coiling up and waiting for  breakout. There is still room to trade between 9800-10100 but it would be more beneficial to trade a breakout of that range.


DaxTrader RSI Version 3!

It’s out, trial it for free now (expires at the end of the week)

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Try the indicator as well

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Just be aware that the current version available for sale is version 2, this trial is version 3. The website will be updated within the next week for the new software.


Dax Support & Resistance

Daily R2 10161
Daily R1 10074
Daily Pivot 9915
Daily S1 9828
Daily S2 9669
200 Day EMA 10226