Good morning traders!
The Dax continued its recovery yesterday, slowly but evidently as the prospect of continued cheap money from central banks drives the market, temporarily. German analysts are disappointed with the declining German industrial-related headline numbers but are certainly confident of stabilisation in partners from China which may provides some key fundamental drivers looking forward.
The big question today is whether or not the daily candle, a spinning top at an important area of confluence is a bearish signal and turning point. For this reason, and as purely a technical exercise I am leaving my ridiculously poorly performing trades open. I will eventually cut the trade out for a stupid loss if this current move is indeed a bullish break and this cutting of the trades will further affirm to me that I am not a bearish trader!
Once again yesterday there were some good opportunities to trade. I used to like using pivot points to trade short term. I used to like trading bounces from key pivot points, placing stop losses underneath the upcoming pivot point and trade a speculative bounce, I would normally aim for 2:1 return because of the failure rate, but yesterday would have been good. There was a good bounce from just short of S1 and a bounce from R1. So I intend to explore this in a bit more detail to see if an indicator can be built.
Good luck trading today and watch these levels:
Support & Resistance
|200 Day SMA||106691|