Good morning traders!
Another all-time high was achieved yesterday as price broke and close above 12500 signalling a continuation of the recent buying momentum. By closing above 12500 we have ended the recent sideways price action and broken out to the upside making the 12400 support that much stronger.
As far as signal go, I actually received a sell signal yesterday from a new indicator I am developing and the reason for the sell signal is because we were overstretched to the upside. Take a look at the 5-minute chart, you will see we were above the Bollinger band in the late afternoon and posted [tenuous] bearish divergence up there. I decided not to take the trade because the bands have been pinching for the last few days after digesting the large move from last week.
We are now back inside the bands, in the top half, above the midline and currently hovering around the daily pivot (pivot point indicator).
12478 could be an interesting level, as this has been a level of both support and resistance recently, so I suspect it will be used as a potential support level for traders looking to go long from current levels. As far as technical indicators go, the fractal indicator (hourly fractals on the 5m chart) has shown some good spots to trade, the problem with that strategy is the time taken for the fractal to form.
The algo remains bullish and looking for entries, yesterday it made a couple of small trades, both winners. The Gold channel currently has four open trades, AUDUSD, EURUSD, Oil and GBPJPY.
Yesterday, I watched ‘The Big Short’ again, great film. I recommend it to you.
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Dax Support & Resistance
|14 Day ATR||119.18|
|200 Day EMA||11355|