Good morning traders!
It’s a new month and it’s Friday. My first thought is that it is reversal day. We have been in a technical short-term bullish trend since last Friday and this could be seen as a simple retracement, normal behaviour given the aggressive sell off, so the question now is whether the overall fundamental picture begins to influence the technical patterns again.
It is generally expected/accepted that the fundamental picture for European stock markets will be less optimistic given the increased levels of uncertainty following Brexit. Although Brexit is only a political issue, not specifically an economic one, it certainly does have many economic ramifications.
We have already tested the daily pivot today, bounced from that, but failed to take out the high from yesterday, so it is possible that we are about the fail to continue the bullish trend. You may want to look for a trend line break to the downside to confirm, but a few days ago I was looking for a reaction around 9750 to load up a short position and we are pretty much at that point right now. So I have already gone short.
Dax Trading Signals
I sent out a signal to short from 9740 this morning and target 9685. I had a stop loss at 9760 and was stopped out by 4 points, bad luck. Since then I have sent out a couple more short signals to my subscribers today (from just under the 9750 rejection), and so far so good. If I am wrong, then I will accept the loss, but I am bearish today and looking for spots to short.
Dax Support & Resistance
|200 Day EMA||10090|