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  • Writer's pictureuseyourbrainforex

DAX market analysis - January 5, 2024

dax trading analysis

Yesterday's trading session did not bring about significant developments, as the market generally adopted a consolidative stance with minimal changes. However, when viewed structurally, we find ourselves still positioned below the supply zone, which represents a structural resistance level. At present, the primary focus for the market is grappling with heightened volatility.

A key consideration is the fact that, until the index, particularly from a one-hour (H1) perspective, reclaims levels above 16,800 points with clear confirmation immediately following a breakthrough beyond this threshold, the prevailing sentiment remains bearish. Any shift in this scenario is contingent upon the index surpassing this critical zone, but for the time being, my strategy revolves around actively seeking and prioritizing short positions over long ones. This applies especially during swing-intraday approaches and for shorter-term movements, each of which follows its own set of rules.

dax trading analysis
DAX, 1H chart, TradingView

The significance of the 16,800 zone cannot be overstated. In my analysis, the market might attempt a re-test of this level today, even if not precisely hitting the same numerical mark, at least within the vicinity. It is crucial to monitor how the market behaves around this key level, as it could serve as a pivotal point for potential directional changes in the trading landscape.


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