Dax 40 March is forming a sideways consolidation as volatility decreases, which is normal in both a bull & bear trend. We do not know how long this process will take but there is definitely no sell signal at this stage.
We held a range of about 250 ticks last week so there are few decent trading opportunities until we see some movement again.
FTSE 100 March holding a 100 tick range last week so same levels apply for today as we wait for a move.
Remember when support is broken it usually acts as resistance & vice-versa.
Daily analysis
Dax March held a 115 tick range on Friday. Support at 15000/14950 (a low for the day just 33 tocks above yesterday) with a bounce from here to target minor resistance at 15170/200. If we continue higher look for strong resistance at the January high of 15300/330. Shorts need stops above 15380. A break higher is a buy signal.
First support again at 15000/14950. A break lower targets 14870/850 then strong support at 14770/720.
FTSE March longs at first support at 7695/75 worked perfectly yesterday as we establish a sideways trend for an easy 50 tick profit on the bounce to strong resistance at 7745/65. (A high for the day here yesterday in fact) - Shorts need stops above 7785. A break higher is a buy signal targeting 7825 before a retest of 7850/60.
First support again at 7695/75. Longs need stops below 7865.
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