DAX price action on the daily today will set the scene for next week

Russell Shor, CFTe, MFTA FXCM

The GER30 has consolidated sideways since the end of July (dashed blue rectangle). Ichimoku is trend following and if the index continues to consolidate we will expect whipsaw signals. We do note that yesterday’s candle was a hammer (blue arrow). I.e. bears lost control at the day’s low and the session ended with bulls in charge. This happened at black base support line. The fact that the base line is still trending up does suggest that the underlying momentum still has an upwards bias. Today’s price action is important for next week. If there is bullish follow through and price closes above the green horizontal we are likely to see another assault on overhead resistance (red shaded horizontal Bennett 13,400 and 13,500). Other Ichimoku positives to consider are that the orange lagging line is still above price and that price is above green cloud support. These also suggest that the current bias is upwards, trend development pending.

CHART SOURCE: FXCM Marketscope 2.0

Past performance is not an indicator of future results

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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