Daily Timeframe: The shows that after three days of rather frustrating sideways action, the DAX index saw a further increase in value trading as high as 10545. This was very likely fuelled by the ECB press conference held yesterday afternoon.
4hr Timeframe: The recent movements seen on the DAX forced prices above the upper limit of an (9126 – 17/11/14, 10084 – 04/12/14), which as a result formed a nice-looking 4hr decision-point demand area coming in at 10228-10302. With the recent buying pressure being seen over the past two weeks, we feel that this market may be overstretched at the moment. As such, we believe a retracement may be in store, if so, price could very well decline down towards the source of the break – the aforementioned 4hr decision-point demand area. This area likely contains unfilled buy orders, and as such (when/if the time comes) we plan to watch for confirmed buying entries on the lower timeframes around the 10317 point.
Current buy/sell levels:
• Buy orders: 10317 (Predicative stop-loss orders seen at: 10213).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).