Daily Dax for Thursday 19.12.2017
Yesterday the German Index increased by 1.59% and closed at 13.312. With the market opening, we saw a gaped upwards movement. In the following, the market consistently raised until closing. The last hourly candles showed a reversal pattern. Therefore I came to the assumption, that markets will start a bit lower today, but will increase after XETRA market opening at 9:30.
Due to yesterday’s trading, the outlook is still positive. There is a good possibility that the buy side is taking over and we will see new highs. This setup holds as long as the uptrend line holds. When the trendline gets breached, bears get in favour and downside movement gets more probable. To measure that correctly, one can say, that the long setup holds until we see a drop below 12.950 Points.
Currently, the long setup is way more favourable. We just made new highs and furthermore, we could exit the trend chanal positively.
To get more precise, markets just confirmed the significance of the current trend by supporting the trendline on Dec 5th. Furthermore, we just exited the bullish trend chanal with a busted upwards gap and high volume. What displays the significance of the movement. The final Confirmation would be, that we also saw a Head and Shoulder – Pattern.
Overall one can say, that the end of year bull market just does its work.
Is suggest a trading setup that waits for the morning correction to appear. This should be done by reaching 13.200 points. Starting here a long position targeting 13.660 Points would be a good option.
Resistance: 13.330 / 13.400 / 13.525 / 13.633
Support: 13.242 / 13.200 / 13.000
Good luck for the Day!