Good morning traders!
July already! Hardly surprising that yesterday we saw a pretty subdued candle compared to Monday, but anything would look slightly less spectacular when compared to Monday. We opened and closed pretty much at the same price, just under 11,000 and are still struggling to take out the support of 10800.
Despite all the political and financial turmoil regarding Greece, I am actually considering a long trade and this could the place to do it with a stop under 10700 and target 11400 giving decent risk to reward ratio. But I haven’t placed the trade yet.
I would like to see a bounce today and watch the market relieve itself from the sell off, but I still want to wait for a market reaction to the official announcement of the missed IMF payment. I know most people predicted it and a lot of that is already priced it, but to be safe I will wait and “keep my powder dry” as Alejandro Zambrano says.
Dax Support & Resistance
|200 Day EMA||10861|
The weekly chart perhaps should be looked at as providing context. It looks heavily bullish, despite the crisis in Greece. We are now just experiencing the required healthy correction. The regression channel shows price just creeping into the second, lower, half of the channel.
200 EMA testing time on the daily chart! The 38.2 fib from the Oct
So pivot points were stretched heavily yesterday due to the crazy Monday candle, but today the R1 and S1 mark the trading range for yesterday, the R2 will sit just inside the Monday high and S2 is sat deep into the heavy support area. Yesterday we failed to take out the 38.2 fib line. The daily pivot point was not taken out yesterday, so we traded underneath it the whole day.
A break up or break down would perhaps tempt many traders into a move (a break under the weekly low or break above yesterday high).