In today’s analysis I am looking at two instruments- DAX and gold. I will start of with the german stock market- DAX.
DAX (Germany 30)
Yesterday I spotted a bearish formation on the 4 chart timeframe. Today, we are already on the path lower, so I am considering possibly adding to my short position. The key levels of this instrument are:
Resistance:12320
Support 1: 12250
Support 2: 12100
The sell-off yesterday was initiated by a pinbar on the 4 hour chart. Today, I will be looking for another confirmation price action candlestick.
Gold
The other instrument I am going to go through today is gold. The key levels are:
Support: 1256
Resistance: 1273
It seems like price has settled down over the 1250 area and now is waiting for more buyers to join the party. Looks like the daily chart is adding to the bullishness. yesterday printed a small daily rejection and if today closes as a bullish engulfing, it will confirm the bullish outlook. After 1273, we are getting closer to the 1300 handle. This is where I see the big test of bulls vs. bears to be.
In the meantime, have a great trading day and keep your charts open.