It is difficult to have an opinion on direction at the moment because of how strong the market moved on Friday because we broke above 10 550 and my first thoughts were that we are now about to test 10 700.
We posted a bullish engulfing candle on the daily chart after making a lower low and piercing the daily 200 EMA to leave ourselves stretched long. The signal to buy came from many opportunities such as the bullish divergence visible on the m30 and m5 charts, the bullish engulfing candle on the H4 the reverse (inverse) head and shoulders pattern visible on the previous 5minute chart.
We now seem to be finding our feet and digesting some of the gains. The mini move higher that happened this morning has corrected 61.8% and is now moving sideways in between the daily pivot and the daily R1.
Looking to buy a dip from 10400
Looking to buy a break off 10600+
Short-term bullish above 10485
Interested in shorting current levels, but better price to short nearer to 10700
Possible setup with stop just above recent high.
Dax Support & Resistance
|200 Day EMA||10239|