What’s inside:
- The DAX remains quite choppy on daily, turning to 60-minute time-frame
- Short-term trades only game in town for now
- Support and resistance levels out-lined
Getting a good feel for the DAX as of late has been difficult, providing no clean looks for traders holding positions beyond a few hours. Global equity indices, especially in Europe, have been choppy. The U.S. and Japan haven’t been much easier with the one-way grind higher, but at least they are moving in one direction. These conditions will change for the better at some point, it always does, but we will have to be patient for now in the wake of volatility collapsing shortly after the U.S. presidential election.
We noted on Monday that the recent range was more bull than bear. This may still be the case, but that notion was predicated on the idea that the DAX would hold steadier than it has since the start of the week and not violate the 11/10 low at 10576. It closed back above this level yesterday, but still wobbling. Our interest won’t be significantly piqued from the long-side until we see a strong daily close well above 10800. On the short-side, our interest is limited even more so, with little to sink our teeth into at this time.
Given the market is only providing hit-and-run type trades, we’re focusing on the 60-minute time-frame. There are a series of lower lows and lower highs in place since the 11/22 swing high, but that could soon change. At the time of this writing, the DAX is above the top-side parallel of a channel in place since the 11/22 high. A sustained move above the upper parallel exposes resistance just above 10700, then the zone between 10767 up to 10827 (which is rather significant on the daily). On the downside, short-term support registers at around 10550/30 should it drop back below the upper parallel.
DAX: 60-minute
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---Written by Paul Robinson, Market Analyst
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