Short term
Trade view / 20 March 2014 at 9:33 GMT

Fade the Dax as gap is closed

Trader/Analyst / First4Trading
United Kingdom

Background

Prices moved quickly higher yesterday from the open and popped above Tuesday’s high before rejecting gains and moving lower. The move lower accelerated in late trade resulting in a bearish inside day. With a gap open lower this morning further downside is expected to follow. However, we are looking to sell into a pull-back higher towards the gap for a better risk/reward. The corrective rally from the March 14 low stalled at the 61.8 per cent Fibonacci level and also backs the call to remain bearish. The pull-back higher this morning stalled at 9250 and this provides a relatively tight stop and equates to a decent risk/reward on this call.

Management and risk description

Move stop to entry once the first target has been reached.

Parameters

Entry: 9210 or better.

Stop: 9250.

Target: 9125 and 9075.

Time horizon: Intraday.

Short-term chart
dax1.png
Source: Saxo Bank

5-year chart

dax2.png
Source: Saxo Bank

Disclaimer:
Non-independent investment research
This investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Saxo Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. » Read more

1y
sauliukas sauliukas
Yep… It was near. But not close:). Any ideas for tomorrow? Thanks!
1y
Waheed786 Waheed786
Options Expire tommorow Whacky!!!!
1y
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Will re-assess in the morning. 9320-30 resistance is under threat at present.
1y
sauliukas sauliukas
Thanks. Do you think it'll close above 9300 tonight? I'm doubtful.
1y
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
I think it may try the resistance tonight. No reversal signals currently. Needs to break below 9275 to take the pressure off
1y
Neal Patel Neal Patel
Morning Steve, how do you think Dax will perform today?
1y
Beverley Bryant Beverley Bryant
Morning Steve , Any thoughts on the Dax today ?
1y
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Yes we have bought at 9300 with a stop at 9265. Targets are 9370 & 9410
1y
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
We have taken partial profit at 9350.
1y
Beverley Bryant Beverley Bryant
Thanks for that :o)
1y
Neal Patel Neal Patel
Thank you
1y
Beverley Bryant Beverley Bryant
still long on this one steve?

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Show latest activity
Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail