Tuesday, May 19, 2015

DAX - 05/19/2015

The index is on a break out attempt, but so far the upper line of the smaller channel is still a resistance. The momentum on the daily chart created a bullish cross which still needs to be confirmed by MA10/20 cross, but the downward channel is broken and today's gap could easily be a runaway gap. Even if this is part of a correction the 11900s level should be tested as 61.8 fibonacchi level is laying right around there. 11 o'clock (CET) ZEW data should determine the next move.
DAX daily chart - channels at crossroads.


Monday, May 4, 2015

DAX Context - 04/05/2015

I'm gonna go for a vacation this week. From next week I'm gonna start studying for my exams, so I'm not gonna follow the market during the day (thus I'm not gonna trade until I'm done). I'll try to update my context every once in a while though.

I think the market is likely bottomed and reached the end of a wave (4). The price action is likely making legs for an attack of the ATH again. This wave count is especially valid above the last week's low. The market reached and ideal level in fibonacchi extension (wave A and wave C)) wise and also hit the ideal fibonnachi retracement level on higher time frame (38.2). Primary targets are marked on the 4 hours chart with red lines.
DAX: h1 - h4 - daily charts