Hello traders![warning]9700-9800 is a choppy zone![/warning]
Today, the US is closed, so it’s unlikely that we have any ridiculous moves. We have had some time to digest the fallout of Brexit now and whilst the markets are not exactly melting down, the political parties seem to be. Nigel Farage is now the latest to add his name to the ‘quit’ list after coming out to say that he will stand down as head of the party. After campaigning for Brexit for some considerable time, you have to wonder why he has decided to do this, again.
On the hourly chart, the Heiken Ashi is still green and we are still bullish. But I am watching for a reaction here, because we have retraced 50% of the recent move from Brexit and slowing down. Ultimately, right now there is no obvious trade out there, the market is undecided and will continue to be choppy until either 9812 is broken or a significant move below 9750.
There is a wedge formation on the Dax, which may offer an interesting trading opportunity as we have broken it to the downside. If this pattern has any weight, then a test of the underside (and rejection) could offer a shorting opportunity. 9750 has been an area of short-term support, created on Friday afternoon. We broke that this morning and are testing it again right now, as I write this article.
Strategy to trade today? Perhaps a range trading system, until a break out happens. RSI 70 30 with 8 periods?
I sent out a buy signal early this morning to the subscribers, but this was stopped out for 15 points on a fake breakout.
Dax Support & Resistance
|200 Day EMA||10087|