Short term
Trade view / 23 August 2016 at 8:13 GMT

Dax downside rejection says get long

Technical Analyst / FuturesTechs
United Kingdom

Yesterday saw a 270 tick selloff in the Dax Futures (Sep '16); from 10,657 to 10,386. This low was very quickly "rejected" with a long lower shadow showing up on a number of the smaller timeframe charts (i.e. 10 minute to 60 minute). The thing that interested me was where this low came in, as it was in the gap created when we opened strongly on August 8. This morning has started well for the bulls with the early rotation holding support at 10,510 (yesterday's VPOC (most actively traded price). I want to get long on the back of this!

Management and risk description


Entry:  Buy above 10,510.

Stop: Below 10,440.

Targets:  10,650, 10,800 and 10,990.

Time horizon: 2 days to 2 weeks.

Chart 1: Daily candlestick chart
DAX Daily
Chart 2: Weekly bar chart

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
24 August
Clive Lambert - FuturesTechs Clive Lambert - FuturesTechs
First target at 10650 has just been hit.
24 August
bancodemon bancodemon
nice TP for me based on your advice...much thanks
25 August
Clive Lambert - FuturesTechs Clive Lambert - FuturesTechs
We have seen a weaker tone this morning and we're not too far away from retewsting that 10510 levle that was the basis of Tuesday's trade. I still think this is a level of note so am watching to see if we see buyers returning and/or any signs of downside rejection.


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