Good morning traders!
Let’s hope that most of you had more success on the ‘trading floor’ than me yesterday. My trading day ended first thing in the morning as I was stopped out for a heavy loss and I went straight into defensive capital conservation mode. I switched out the auto trader and sat out all day.
So I haven’t read the Skype thread for yesterday, but I am sure that, as always, there is a wealth of useful material in there. Come and join if you want to contribute:
DaxTrader RSI EA
Dax Support & Resistance
|200 Day SMA||10683|
There is a break below a previous low and I imagine many traders could be tempted to short from a bounce off the underside. However many other traders are looking at a larger corrective pullback before any further losses. But one thing seems to be agreed by those traders and that is we are looking heavily bearish.
Bearish targets vary, but I am certainly not going to take a short trade just yet. I may be tempted if we take out 10,100 as 9,800 looks likely.
The 5 minute chart seems to provide a bullish opportunity in the very short term as the EMAs are looking to cross so a potential setup exists to aim for the 38.2 or 50% correction with stops under yesterday’s low. But lots of traders will be looking for that. SSI shows traders are net short and this could still provide further downside moves.
I find the EURUSD interesting right now with it currently poised to take out support at 1.08. So I may look to trade that instead of Dax today. We’ll see.