Good morning traders!
We have had a very strong bullish morning today and take out the recent highs from last week. We are currently around 10239 and looking to digest the current gains so trading has slowed in the last couple of hours. Whilst price action looks very bullish at the moment, we are very quickly approaching a couple of major resistance areas. If we look at the daily chart first, you can see the trend line connecting the previous three peaks, all of which were attempts to take out the daily 200 EMA and all of those attempts were eventually rejected. In addition to these resistance levels, I am also watching the weekly R1 and R2 (pivot point indicator) which you can see on the 30 minute chart below, so bulls beware.
However on the other side, most of the other indices (SPX and FTSE especially) have already taken out the Brexit high, so I would be looking for the Dax to do the same, despite the UK being one of (if not the) largest trading partner for Germany. I think a break above these resistance levels, can be an interesting opportunity for bulls.
Heiken Ashi on the hourly chart is still green, we are above the 34 hour EMA and have taken out most of the fibonacci levels, suggesting that there could still be some bullish momentum.
Last couple of weeks have been choppy, with mixed signals being sent, so we are now looking for a decent break.
Dax Signals & Automated Trading
I am using the DaxTrader RSI 4 (not currently available) and I currently have the RSI expert advisor system setup on a bullish template (RSI 8 periods, 90 40 levels). You can use RSI 3.2 with these levels.
The trading signals are live and you can follow these here: https://thedaxtrader.co.uk/dax-premium-trading-signals/
I was asked a question of whether I have any record of trading history online, the answer is yes, one of my accounts is linked to an MQL5.com account, it’s around 1 year old and the details are here:
Dax Support & Resistance
|200 Day EMA||10062|