Good morning traders!
I feel for all you guys in London today, you seem to really find it tough to deal with the hottest July day on record, 36.7 degrees I heard, which is obscene for England. That just doesn’t happen. I know some countries are hotter, I know some countries deal with those temperatures at night time, but we are in England, the home of the wet and cold. Today we roasted!
As for the markets, there is still plenty of stormy weather….. (urrgghh, that is a terrible pun….)
Let’s try again. As for the markets, the uncertainty still lingers but despite the looming negativity the Dax made some progress today. The 200 EMA is still acting as support and the longer the zone of 10800-11000 holds, the stronger it becomes as a base. I am still really considering a long entry.
The following levels are interesting to watch: break above 11,200 and 11,300 or a break below 11,100, 11,000 or 10,900. The Dax has a habit of respecting the rounded hundreds +/- 20 points. There is also evidence from yesterday of reactions at those levels.
Overall we are still in a bearish trend, with the trend defining level being the most recent swing high at 11,635 but a failure to break below 10800 could signal the end of the trend as we have been unable to make a new lower low.
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Dax Support & Resistance
|200 Day EMA||10866|
The daily chart still showing the EMA as a strong platform. I personally think in 3 months we can look back on this chart and see a bounce. Possibly an initial break below support, towards 10500, but eventually 12000+ will happen. If I am wrong, no problem, but that’s my opinio in the more medium to long term.
Bearish channel still intact with the fractals (daily) showing some interesting places of support and resistance, on or close to the rounded hundreds.
The 34 period hourly EMA is beginning to show a levelling off/changing direction, signalling a potential change in momentum. I want to watch for a move towards the weekly pivot, a strong recovery after a humiliating start to the week. If we reach the weekly pivot, I suspect we see further downside, maybe with one last attempt at taking out the 10800 support.
We are trapped into a range 10800 – 11300