DAX: This pattern has caused strong pullbacks since 2012.DAX on the 1W time frame is technically bullish (RSI = 64.556, MACD = 451.600, ADX = 57.699) having avoided a 1W Death Cross as the 1W MA50 is diverging again from the 1W MA200.
Every time it avoided a 1W Death Cross since 2012 while the 1D MA100 crossed above the 1W MA50, DAX has always pulled back to at least the 1W MA50 (three cases out of the four even hit the 1W MA200). The 1W MA50 is at the moment at 13,866. Due to the circumstances we see a softer landing on the 1D MA100 however, which is at 14,315 but rising every day rapidly.
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DE40
DAX Sell this rejection, buy on the 1D MA50.DAX (DE40) got rejected on its third Lower High within this 2 week Channel Down. We are taking this sell but first target is on the Higher Lows trend-line of the Triangle and only if that breaks, we will extend selling to complete a -2.18% decline on the new Lower Low of the Channel Down.
The RSI's Rectangle shows the best short-term buy entry. The most optimal long-term though will be on the 1D MA50 (red trend-line), regardless of that being on Support 1 or 2. That will be our buy entry, targeting Resistance 1 (15480) and Resistance 2 (15655) on the long-term.
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DAX has one more drop to make before the RSI signals a buyDAX is inside a Megaphone pattern but the recent Channel Down of the past 2 weeks is eyeing a repeat break downwards as the December Megaphone did on the 1day MA50. The latter is waiting now inside Support A.
The strongest buy signal will be given when the 1day RSI hits the bottom of its 3 month Rectangle at 41.00. Buy and target the previous High at 15650.
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DAX in a descending triangle.GER40 - Intraday - We look to Sell at 15484 (stop at 15564)
The bearish engulfing candle on the daily chart is negative for sentiment.
Daily signals for sentiment are at oversold extremes.
A higher correction is expected.
The trend of lower highs is located at 15510.
Prices expected to stall near trend line resistance.
Our profit targets will be 15284 and 15244
Resistance: 15400 / 15480 / 15500
Support: 15350 / 15300 / 15250
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
DAX One last push lower for a bottom.DAX has had the strongest 1D bearish candle today since December 15 2022. That was the candle that accelerated the correction from the Higher High Zone (red zone) of the long-term Channel Up to the Buy Zone (green zone). With the Channel Up pattern starting on the October 03 2022 market bottom and remaining valid up to now, this Buy Zone has been the most optimal long entry of the past four months.
We look at two indicators for buying, the 1D MA50 (blue trend-line) and the 1D RSI hitting the bottom of its Rectangle pattern and entering the Accumulation Mode. A -6.50% correction doesn't have to necessarily be completed as in late December. Our long-term target is the 0.786 Fibonacci Channel level, which an early projection giving us a 16350 Target.
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DAX to stem dip again?GER40 - Intraday - We look to Buy at 15282 (stop at 15202)
Daily signals are bullish.
The bullish engulfing candle on the 4 hour chart the positive for sentiment. Preferred trade is to buy on dips.
20 1day EMA is at 15340.
Support is located at 15300 and should stem dips to this area.
Our profit targets will be 15482 and 15522
Resistance: 15556 / 15630 / 15660
Support: 15500 / 15450 / 15400
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
DAX respecting the 4hour MA200DAX is staging a rebound coming close to the 4hour MA50 yesterday (has been untouched since January 4th). This is the normal technical reaction we expected on such an important Support Cluster (as the dotted line from the October 2nd bottom was also there) and was a short-term buy.
Maintain a tight SL though as a cross under it renders the price extremely bearish on the medium term that will target the 1day MA50.
A -6.60% repeat of December 14th - 16th gives a 14610 estimate. 4hour RSI still far from the buy opportunity when being oversold.
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DAX to breakdown?GER40 - Intraday - We look to Sell a break of 15279 (stop at 15359)
Overbought signals and exhaustion indicators offer fair reason to sell the index but we prefer to see a break of support before fading this impressive move.
Although the bulls are in control, the stalling positive momentum indicates a turnaround is possible.
Short term indicators have turned negative.
Bearish divergence is expected to cap gains.
A break of yesterdays low would confirm bearish momentum.
Short term momentum is bearish.
We expect a reversal in this move.
Our profit targets will be 15079 and 15029
Resistance: 15400 / 15450 / 15500
Support: 15283 / 15243 / 15200
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
DAX about to break the diamond pattern to test 15k againHi all,
I see here a diamond pattern in the DAX which usually signal market tops and a reversal.
If DAX will break the Diamond trendline around 15.300 it signals me a short opportunity with targets at fib level around 15.180 where we will find also the 4H MA200. If we loose this level, DAX will test 15.000 again with final target 14.900
This is no financial advice.
DAX giving two excellent tradesDAX is inside a long term Channel Up pattern.
The price volatility in 2023 can be seen as a mini Rising Wedge on a Rising Support.
A similar Wedge was at the start of the Channel Up. When it broke, the MA50 1D got hit.
Trading Plan:
1. Buy on the Rising Support and Fibonacci 0.5
2. Buy on the MA50 1D if the Rising Support breaks.
Targets:
1. 15600 (under Resistance).
2. 16200 (top of Channel Up).
Tips:
1. The RSI 1D is imitating November/ December. Right now it is on the December Support. Use it accordingly.
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DAX The great February scalpNice illustration of DAX's sideways trading since the start of February. The Fibonacci levels help at finding the low risk/ high reward trades. And those are to sell on Fibonacci 0.786 and buy on Fibonacci 0.236. The RSI is on a similar range. Do this enough times to grow your profit until the pattern breaks.
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DAX May break lower from this pointDAX is trading on a Bullish Megaphone inside a five month Rising Wedge. The 1D time frame is in green (RSI = 60.102, MACD = 197.500, ADX = 27.090) but the 1D RSI has been sideways at best (if now on LH) for as long as the Bullish Megaphone trades, which is a bearish divergence. This is similar to the RSI formatio of the last Wedge High on Dec 13th after which a correction to the 1D MA50 took place.
Our plan is to take a tight long at 15,180 and if the price crosses below the Rising Wedge, enter it on the 1D MA50. In both cases we target 16,000.
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Will DAX find support at current lows?GER40 - Intraday - We look to Buy at 15275 (stop at 15195)
Daily signals are bullish.
Short term momentum is bearish.
20 1day EMA is at 15305.
Bespoke support is located at 15300.
We expect prices to stall close to our bespoke level (15300).
Our profit targets will be 15475 and 15515
Resistance: 15500 / 15580 / 15660
Support: 15400 / 15350 / 15300
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
GERMANY40 BEARISH SCENARIOGERMANY40 had broken through the support of the Rising Wedge candle sticks pattern, which is a sign for possible bearish movement of the instrument. Both MACD and RSI indicators are confirming the outlook: MACD histogram is below the 0 line, while RSI line is breaking the Overbought line from above, also a strong bearish indicator.
If this scenario continues, the price might fall to levels of 14 820, but in the opposite scenario the price might rise to 15 554
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
DAX: Rising inside Channel Up. Sell when RSI overbought.DAX is trading inside a Channel Up on bullish technicals both for 4H (RSI = 58.830 , MACD = 35.400, ADX = 33.092) and 1D (RSI = 65.538, MACD = 212.600, ADX = 27.945). 1D is stronger as its pattern is a Bullish Megaphone for the past 1 month. Basically we are now expanding on the breakout signal given on Monday as shown below.
The Channel Up rises on every bullish leg by +1.80%, thus we are long (TP = 15,690). We will not short its top but rather wait for the more clear signal of the 4H RSI getting overbought above 70.000, which has happened all of its three times with the price hitting the top of the Bullish Megaphone. Then we will go short, aiming at the dashed line (TP = 15,600) which was hit every time the Megaphone printed a Higher High.
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DAX to find support at lower low?GER40 - Intraday - We look to Buy at 15252 (stop at 15172)
The trend of lower lows is located at 15250. 15243 has been pivotal.
Preferred trade is to buy on dips.
20 1day EMA is at 15250.
There is no clear indication that the upward move is coming to an end.
Our profit targets will be 15452 and 15492
Resistance: 15400 / 15480 / 15510
Support: 15350 / 15270 / 15243
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
DAX on a potential medium-term correction.Since our analysis last month, DAX (DE40) hit our target by rising more than +12.50%, as the previous rally fractal within the +4 month Channel Up suggested. Right now the index is loosely supported by the 4H MA100 (red trend-line), having already broken it 3 times, but managed to close all of them back above it. As on December 06 2022, a 1D candle close below the 4H MA100 could trigger the start of a medium-term correction back to the 1D MA50 (blue trend-line). A -6.50% pull-back from the top can even put the price slightly below the 1D MA50 but still on the 0.236 Channel Fibonacci retracement level.
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DAX Megaphone trading with clear breakouts to takeDAX trading pattern for the past 30 days has been a Bullish Megaphone. Throughout this whole pattern, the 4H RSI is having a clear Support to buy and a clear Resistance to sell. With 4H technicals neutral (RSI = 52.897, MACD = -5.800, ADX = 26.094) we have no option but to use breakout trading to limit the risk.
The current pattern appears to be following the one that started the Megaphone. As such, if the price breaks over the 0.618 Fibonacci we will buy and target the market top (TP = 15,640). If the price breaks under today's Low, we will sell and target the bottom of the Megaphone (TP = 15,125).
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GERMANY40 BEARISH SCENARIOThe GERMANY40 had formed a double-top on the daily graph, a strong indicator for potential bearish reversal on the instrument.
GERMANY40 had build a double-top candle pattern at 15614, which might indicate a potential bearish movement with target 14933 and bigger target at 13827. In the opposite scenario the price might continue its bullish movement and reach targets of 15925.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
DAX Rising Wedge aiming at 4hour MA50 and bottomDAX with a strong rejection at the top of its Rising Wedge. Targeting the 4hour MA50 is the norm inside this pattern. As long as its not broken, buying is the action with 15750 the Target. Closing under the 4hour MA50 is bearish, with the Target at the bottom of the Rising Wedge (15100).
Best 2 week buy opportunity inside the RSI's Buy Zone.
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DAX on a thin thread eyeing the 1D MA50DAX is rebounding after holding the 4H MA50 (blue trend-line) and remains overbought on daily. The similarities with the November - December fractal evident and the 1D MA50 (red trend-line) untested since January 03, we expect a sharp short-term correction to it, if the 4H MA50 breaks again. The long-term pattern remains a Channel Up since the October 02 market bottom so our perspective is to take advantage of such short-term pull-backs and buy for the long-term.
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