Dax Technical Analysis 27/12/2016

03-h1-dax-chart

Hello traders!

I trust you all had a fantastic time with your family, friends and loved ones over the last couple of days. With the exception of one or two, this time of the year can bring out the best in people. I think I may have over-indulged in the unhealthy parts of Christmas, so I will probably be in the large majority of people looking to create a new healthy resolution for 2017.

Frankfurt will be pleased that the fine to DB was less than expected. As for trading, I think the rest of this year is still going to have low volumes and provide less opportunity than normal as many trading desks have closed until January. Not just on the Dax, but across all the major indices and in fact all the major financial markets Globally. We have had a very strong December so far, but is it a case of enough is enough for investors?

We had a decent breakout of the month long range earlier in December, in part thanks to the ECB, allowing the Dax to rise, almost vertically, to yearly highs and sit on a 1000 points of profit. Is the year-end going to bring a time for last minute profit taking and target-hitting? It’s difficult to say but I suspect that we have seen the move for this month, it’s unlikely we will see as much action this week.

Dax Technical Analysis

On the daily chart we have reached one of the major bull targets 11430 and are currently in a major resistance zone, set by price action from a similar period last year. We have already extended 100% of the range, which was broken this month and at the top of the trend channel with RSI being firmly overbought, so the opportunities to buy at current price would probably appeal to only a handful of investors, normally those who like to scalp. So bulls are now looking for price to correct before getting in again, although this is at the risk of missing a further move higher from current position (which is exactly the reason I missed the move in the first place).

Barring a more serious economic or financial problem, I am interested in the 11150 zone and 11000 zone.

On the 5-minute chart, we have been fanning since the 21/12 as we have been making higher highs and lower lows, but you’d have to say we are bullish above 11400, but scalpers are probably targeting shorts, with 11475 as a common level to short from, it has failed from this price quite a few times over recent sessions.

Dax Support & Resistance

KEY LEVELS
Daily R2 11526
Daily R1 11489
Daily Pivot 11447
Daily S1 11409
Daily S2 11367
200 Day EMA 10501

Dax Charts

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05-dax-m5-chart

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01-dax-daily-chart

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02-dax-h4-chart

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