Good morning traders!
The strong growth since Monday continues as stock markets have rallied and I am wanting to believe that we are going to have a strong end to the year. 10,000 has been broken again and we have closed above. I like the look of the 4-hour chart, following the bullish arrow to around 10250.
European equities did well yesterday led mostly by energy equities and the uptick in oil based on oil consumption expectations. Tomorrow we wait for the ECB, BoE meetings and FOMC minutes which should drive risk sentiment.
An interesting trading opportunity came from a bounce off the R2. If a limit order was opened to sell from R2 with a 30 point stop loss and a 100 point target, that would have done well. We are currently at the weekly R2 right now so I am wondering how much further we go, before we get the usual pull back. Perhaps today we see that? It could make sense if we look at the daily chart and see the reaction to the trend line underside. If we do, then I am keen to take a long on a pullback.
Well I have proved to myself that I can not trade short. I sat on two ridiculous short trades for too long and decided to cut it for a loss. I learned that the weekly chart candle formation should perhaps have been given more weight with such a compelling signal and although hindsight is always 20/20, it would have been a strong trading opportunity to take. On to the next one.
DaxTradeRSI Expert Advisor
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Dax Support & Resistance
|200 Day SMA||10665|