Main stories from yesterday centered around Cable (GBPUSD) on the forex side as the triggering of article 50 still looms, today we have the UK budget announcement, so let’s see how that affects my current open Cable positions, he’s expected to put some money aside for NHS, Brexit and infrastructure as well as tax cigarettes and alcohol etc, probably continue to reduce the deficit meaning further austerity, but I am expecting it to provide a little bit of bullish activity for the GBP. In Germany, factory orders fell more than expected at -7.4% but of course the market is more concerned with the ECB tomorrow. That may well explain the lack of interest over the last couple of days.
Dax Daily Chart
Yesterday I mentioned about the rising three, it just goes to show that speculating on candlestick pattern formations is not always a wise move, because the fourth daily candle (bearish) has closed within the large bullish candle from last week and only today have we seen any glimmer of bullish activity. But now, as I write this article, that candle has just turned red because the Dax has (inexplicably dropped over 50 points).
The buying zones from yesterday are still there and I am watching 11875-11925, but I expect a bit of a slowdown in the build-up to ECB tomorrow.
Dax Hourly Chart
Big recent candle just posted, I had to update my chart as it showed a different story about 5 minutes ago. So we are back at the recent lows of 1193x which may present bulls with an opportunity to add to longs. If price manages to get to 11900 or 11875 and RSI still has not made a lower low, then we have bullish divergence which is interesting to me.
Dax Intraday Chart
Despite the fast 50+ point sell off this morning, we have not pierced the lower Bollinger band or the daily S1 on the pivot point indicator, so the movement could still be considered as being within normal levels. There is currently no divergence and RSI is only just in the oversold zone, however, I am looking at this as a short-term range. We are at the bottom of a range, my algo is bullish (still) so when we are in these situations, it’s a good time to buy (against many people’s better judgement)
There is a decent reward: risk opportunity with a clear support level, the decline has allowed traders to get some value, rather than buying at extended levels, so I am comfortable leaving the algo to do its work, like the trade below from earlier this morning
The Trading Exchange, [08.03.17 07:29] DAYTRADE BUY #GER30 @ 11933.45 | SL:11909.70 | TP:11987.16 | 2017.03.08 07:29 (GMT) |
The Trading Exchange, [08.03.17 09:19] CLOSE DAYTRADE BUY #GER30 @ 11987.45 | PROFIT: 51.51 PIPS | 2017.03.08 09:18 (GMT) |
Come and Join DaxTrader54 On Telegram
Come and join my broadcast channel on Telegram messenger, it’s here that I broadcast additional Dax analysis and messages to my readers and subscribers. For the rest of the month, it is very easy to get access, please download the Telegram messenger (from www.telegram.org) and then click this link: https://t.me/joinchat/AAAAAEAypsW3Xet_6ngBlw
Dax Support & Resistance
|200 Day EMA||10988|