Dax Technical Analysis 25/01/2017

Good morning traders!

Bullish above 11385 on the longer time frames, but ranging between 11530-11630 on the shorter time frames.

Bears have been alerted because we are at 11630 again! This has been a popular selling spot, so let’s just see today whether we have another reaction, or not. Sellers will be interested in buying here, especially as buyers will be interested in taking profits from here. We have had four consecutive days of opposite engulfing (loosely used terminology) candles, which not really very interesting, more just an unusual technical observation on the daily chart, but that tight range is very compelling now.

Traders will be looking out for the IFO Business Climate release today (surveying more than 7,000 enterprises on their assessment of the business situation and their short-term planning), it’s an early indicator of current conditions and business expectations in Germany. There is not a huge amount more economic high impact news to watch out for tomorrow.

I am personally short EURUSD and still bullish on the Dax, but at this price, I can not find a decent price. But to be honest, there is not a lot to say about this market at the moment, so my broadcast channel today will probably involve more forex and commodity analysis, than the Dax.

Watch for a break above 11680, I am watching for oversold zones on the lower timeframes and divergences to signal a buying opportunity.