DAX (Germany 30) Trading Analysis
DAX (Germany 30) Trading Analysis
Dear traders,
It has been a while since I last posted a trading-related article.
Last time I wrote about DAX, as well!
This time the instrument won’t be different. I did share with you today on my Twitter page a possible trading scenario, which was contrary to what I am going to share now.
I was looking for a potential confirmation of the minor demand zone.
I was waiting for a close on the 4H chart, but such did not happen. In fact, there was a rejection (inverted pin bar) that resulted in a quick reversal.
That is another reason why I put so much emphasis on waiting for the close of the candle.
I have zoomed out and increased from 4H to a Daily chart only to find out that there is a three-day bearish engulfing pattern.
This bodes well for the bears. There is a major supply zone that is just around the current level of the price.
What I will be looking for is:
- Either a confirmation from the 4H chart to go short during tomorrow’s session
- Or bull trap that might make us see a new high and then more sellers joining the queue
Until that happens (and if that happens), I will be patiently waiting and never trying to predict where the market might go.
Happy Trading,
Colibri Trader
Excellent spotting
Thanks Dan! Let’s see how far that will bring us
Hello Colibri,
Wow we’ve had a such a turnaround in the Dax !
It looked for sure it was giving up the ghost.
The Dax is now within 45 points of it previous high (Mar 1st 2019)
This is quite unsettling because all the signs on the next trading day (Mar 4 20190 were that lower prices were on the menu.
Now it looks like it was just a buying opportunity ?
So I guess we are still in an uptrend.
Hello Colibri,
My further analysis reveals that this uptrend in Dax is still intact.
Weekly chart candles springing off 11400 area Weekly TF strong resistance at around the 12000 to 12100 area.
It makes sense that price will be going there.
Weekly chart actually is forming a healthy consolidation pattern and if breakout “up” from it would bring the price right to 12000 area as mentioned.
The tell tales signs of health are that price is simply not regressing and that buyers keep stepping in. Buying is taking place actually just above strong support not “in” strong support (weekly)
There is a bull flag pattern forming on daily as well.
“NOTE” I am long with a small position and a wide stop the markets participants are undulating and waiting for more info. Lets see if I’m right. Getting stopped out will not breach my MM trading plan.
No reason to get short right now nothing on any TF
Regards
That is great analysis Dan! I am definitely on the same page as you at the moment. I do not have a long position at the moment. I am actually waiting to see how the price will react to the 11675 level. Seems like this is a resistance area which might ignite some selling. If I see next candle to be a bullish rejection or in other words an inverted pin bar, I might take a short trade if I see a confirmation from 4H. For now it is more of a waiting period for me. I am also in a small long trade in EURUSD as per my previous analysis here:
https://www.colibritrader.com/eurusd-trading-analysis-14/
I took a long on a bullish engulfing confirmation from the 4H chart.
HAGW 🙂
Colibri
Hello Colibri,
Bit of a recap commentary:
Dax is now 185 points from 12000, the uptrend has remained intact after latest consolidation ending Mar 14th.
It looks to me 12050 is going to be tagged.
I’ve been moving my stop higher and letting the market decide whats best.
It’s much easier trading in with a trend trading theory.
There must be a built in bias with traders to sometimes do the opposite to trend, sadly it happens until the pain is too great. lol
Hi Dan, I still want to see how the daily candle will close today before jumping to conclusions, but yeah.. so far it looks like there was a breakout so you might be absolutely right!
Hi Colibri,
Amazing what a difference one day makes !
4 hr chart slight gap down.
Well we did in fact get into strong resistance same level as week of Oct 14
One things for sure no one knows what will happen next, I’ll wait to see how the weekly candle closes
Hi Dan,
I think this might be the turning point. Will wait to see the close of the day. I wrote about it on Twitter today:
https://twitter.com/priceinaction/status/1108308090875793408