Dax 4-hour Chart

Dax Technical Analysis 01/06/2015

The signs are still present of a rebound in the US economy and the Fed has been doing a good job of managing expectations in the market regarding lift-off. I think that it is likely the Fed is close to ticking all the boxes it needs for lift-off now, considering the slack in the labour market has reduced, wage growth indicators look to be increasing, and inflation figures seem encouraging. It is still waiting confirmation on the causes of the Q1 GDP weakness.

Dax trade setup

DAX Market Summary 06/11/2014

We wanted a catalyst to burst through overhead resistance, we got that. We extended as high as mid 94xx before retracing almost completely and settling somewhere in the middle. Intra day on the 5 minute chart I have a sell signal, 30-minute chart looks bullish, 4-hour chart I still have a buy signal and the daily chart is clearly bullish too.

Chart for day 03/11/2014

DAX Market Summary 03/11/2014

Looking at the bigger picture, profit-taking seems to be providing a break for the rally, in fact we may possibly even have time for a consolidation. There was a survey completed in Germany recently and one third of the respondents assume the current movement in Dax maintains upward momentum. Six percent have declared the bottoming phase ended and now expect immediately a new high. Unfortunately the pessimism is quite high: Overall, more than half of the voting participant does not expect any further price increases in the short term.