DAX 30: Technical outlook and review.
Weekly Timeframe: The weekly timeframe shows that relatively aggressive selling has seen the DAX decline in value down towards a weekly decision-point demand area visible at 9126-9467.
Daily Timeframe: It was reported in the previous analysis that we believed the daily close below 9790 seen on Friday would likely suggest a more bearish bias coming into the week. Admittedly though, we did not expect price to sell off quite so much, and certainly not with this velocity. This move consequently leaves the daily demand area at 9126-9233 clearly in the limelight, as this will likely be where shorts (sellers) are targeting.
4hr Timeframe: The recent momentum south has seen the buyers who attempted to enter long from the 4hr swap area at 9719-9671 well and truly consumed, which as a result saw the market continue south towards a very fresh-looking 4hr decision-point demand area coming in at 9424-9487.
There is clear potential to the upside from here in our opinion, which is why we’re intending to watch the lower-timeframe price action like a hawk around the open. Reasons for considering longs are as follows:
1. Fresh 4hr demand (see above).
2. The weekly timeframe shows price is now teasing a weekly decision-point demand area (see above) at the moment.
3. Trendline confluence (16/10/14 – 8351).
The reason why we’re not entering here with a pending buy order is simply because price could just as easily ignore this 4hr area and head for the more attractive higher-timeframe daily demand area seen below at 9126-9233 (see daily analysis for details).
Current buy/sell levels:
• Buy orders: Watching lower-timeframe price action for confirmation around the 9424-9487 (Predicative stop-loss orders seen at: 9410).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: It was reported in the previous analysis that we believed the daily close below 9790 seen on Friday would likely suggest a more bearish bias coming into the week. Admittedly though, we did not expect price to sell off quite so much, and certainly not with this velocity. This move consequently leaves the daily demand area at 9126-9233 clearly in the limelight, as this will likely be where shorts (sellers) are targeting.
4hr Timeframe: The recent momentum south has seen the buyers who attempted to enter long from the 4hr swap area at 9719-9671 well and truly consumed, which as a result saw the market continue south towards a very fresh-looking 4hr decision-point demand area coming in at 9424-9487.
There is clear potential to the upside from here in our opinion, which is why we’re intending to watch the lower-timeframe price action like a hawk around the open. Reasons for considering longs are as follows:
1. Fresh 4hr demand (see above).
2. The weekly timeframe shows price is now teasing a weekly decision-point demand area (see above) at the moment.
3. Trendline confluence (16/10/14 – 8351).
The reason why we’re not entering here with a pending buy order is simply because price could just as easily ignore this 4hr area and head for the more attractive higher-timeframe daily demand area seen below at 9126-9233 (see daily analysis for details).
Current buy/sell levels:
• Buy orders: Watching lower-timeframe price action for confirmation around the 9424-9487 (Predicative stop-loss orders seen at: 9410).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
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