Dax Technical Analysis & Market Outlook 19/11/2014

Current Bias: Bullish

Resistance Levels: 9544, 9605, 9617

Support Levels: 9438, 9367, 9251,

Dax Summary and Market Review with video

Doji pattern forming at the moment with price failing to get below the daily pivot, todays close will be interesting. We are nearing the top of the pitchfork pattern and something significant will be needed to take us through that.

On the 30 minute chart you could maybe say that there is a head and shoulders pattern emerging with the 9438 being the neckline after a double bottom setup. As the top is 9524, it gives us an 86 point target if we break below the neckline taking us just below what would have been the daily R1 for today and very close to the fib zone for another opportunity to go long.

Current Signals from my indicators, please don’t follow these without your own analysis:

Sell EURUSD

Buy USOil

Sell Dax

Sell GBPAUD

BUY NZDYEN

Sell Gold

Lunchtime Update

We’ve made a new high at 9525 and I wonder how much further we can go, perhaps up to test the daily R1 at 9544? Or or we likely to head on further down and begin the later than expected corrective phase from Monday and Tuesday’s action.

The run seems relentless at the moment, with no sign of it wanting to slow down. How long will it continue?

[wp_ad_camp_3]

Morning Outlook Video & Commentary

[wp_ad_camp_1]

Daily Outlook

The market opened lower today which may have surprised one or two people and continued with a quick sell off taking out one of the low volume pockets from yesterday. Once it reached the bottom of the pocket it turned around and closed the gap.

We have now, in the last few minutes, reached a new high and are threatening the 9500 level. I was predicting a down day today especially after the ground we have covered in the last two days, I did not expect to see the start of three bull days, but if that is what the market wants, then I will follow where I can.

The market is fickle so I may as well be too.

If we can break 9500 today then my first target is the daily R1 at 9544. From here the daily R2 is at 9605 and more importantly is the 9617 level today which is the top of the pitchfork which has been developing over the last few months. This has been breached to the upside only once and price reversed at this key level.

[wp_ad_camp_1]