DAX 30: Technical outlook and review.
Weekly Timeframe: The weekly timeframe shows that the buyers have well and truly been in control for the past two weeks now. This consequently forced price to trade around an all-time high seen at 10048, where at the time of writing a little selling interest is being seen. A break above here would likely attract further buying, resulting in the DAX continuing on its (near) three-year uptrend.
Daily Timeframe: Yesterday’s trading session was rather aggressive in comparison to the previous five trading days. Price formed a bearish engulfing candle around a daily resistance zone coming in at 10048-10007. This will potentially get a lot of candle-trading enthusiasts entering on the break of the low 9833. Nonetheless, entering short here may not be the best path to take considering that just below lurks a daily ignored Quasimodo level at 9789, which will likely see a bounce at the very least. A break lower below this level would be a different story entirely.
1hr Timeframe: The 1hr timeframe shows that the DAX sold off at around 13:00 pm GMT yesterday, which consequently broke below a 1hr demand area seen at 9867-9903 into a minor 4hr resistance swap level coming in at 9832. A break below this level would not likely be of any use to us, as oncoming 4hr demand is looming just below at 9971-9789 (located around the ignored daily resistance level seen at 9789). If buying strength is seen around here, this will potentially indicate selling weakness from the 10048 weekly level, which is a possibility since let’s not forget that the DAX has been in an overall uptrend for nearly three years now.
With the above taken into consideration, we are going to be watching this index closely today around the green area (9832/9789) for lower-timeframe confirmation to enter long. In the event that this green area is consumed however, this would likely encourage follow-through selling down towards at least the 1hr demand area coming in at 9683-9712.
Buy/sell levels:
• Buy orders: Currently watching for lower-timeframe confirmation between 9382 and 9789 (Predicative stop-loss orders seen at: 9762).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: Yesterday’s trading session was rather aggressive in comparison to the previous five trading days. Price formed a bearish engulfing candle around a daily resistance zone coming in at 10048-10007. This will potentially get a lot of candle-trading enthusiasts entering on the break of the low 9833. Nonetheless, entering short here may not be the best path to take considering that just below lurks a daily ignored Quasimodo level at 9789, which will likely see a bounce at the very least. A break lower below this level would be a different story entirely.
1hr Timeframe: The 1hr timeframe shows that the DAX sold off at around 13:00 pm GMT yesterday, which consequently broke below a 1hr demand area seen at 9867-9903 into a minor 4hr resistance swap level coming in at 9832. A break below this level would not likely be of any use to us, as oncoming 4hr demand is looming just below at 9971-9789 (located around the ignored daily resistance level seen at 9789). If buying strength is seen around here, this will potentially indicate selling weakness from the 10048 weekly level, which is a possibility since let’s not forget that the DAX has been in an overall uptrend for nearly three years now.
With the above taken into consideration, we are going to be watching this index closely today around the green area (9832/9789) for lower-timeframe confirmation to enter long. In the event that this green area is consumed however, this would likely encourage follow-through selling down towards at least the 1hr demand area coming in at 9683-9712.
Buy/sell levels:
• Buy orders: Currently watching for lower-timeframe confirmation between 9382 and 9789 (Predicative stop-loss orders seen at: 9762).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
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