Dax Technical Analysis 23/05/2016

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Hello traders!

What a crazy start to the day, with some massive intra-day swings, which makes me almost thankful that I did not get into anything, but looking more closely at the 5 minute chart, were there some interesting opportunities missed? I think so. We started off within the first hour of trading, we got of to an uncertain start but rallied to around 9940, saw a couple of rejection candles of mini rejection candles and then took out the daily open. From here there was a big sell off which started to slow down around 9815. After a little retracement we saw more tails appear, then a pin bar, followed by an equally large rally which took out the daily high. That alone would have been a bit unusual. But now, we are seeing that move wiped out, starting with yet another cluster of wicked candles.

I think there are plenty of traders who have been crushed by these swings today. The Dax is living up to its reputation, that’s for sure. It’s a volatile market, not for the faint-hearted.

Right now, 11:20, we see a couple of tails developing, so would this be the next rejection?

Multiple Time Frames

The daily chart is bearish after breaking out of the bullish trend channel, but yet to confirm the move by breaking below 9750. The 4-hour chart is moving sideways, currently about to test the lower envelope band and you can see the 9750 more clearly. The oscillators on the hourly chart are turning bearish. The 30 minute chart is sideways and choppy.

Overall though, nothing has changed from last week. We are still trapped between 9750-10100. Longer term traders will wait for a break.