Dax Technical Analysis 08/11/2016

Hello traders!

So we have had some significant gaps in many markets yesterday and the reason being, as you probably already know, because the FBI cleared Clinton from any wrongdoing and in relation to the latest batch of emails that they found. You might remember there was speculation that there could have been some wrongdoing and obviously it’s not good if the FBI is investigating you just ahead of an election and now because she’s been cleared people think that is more likely that she’s going to be elected, so with that in mind we’re seeing all these markets like the USDJPY moving up higher.  

So just to put things into perspective, before the whole email saga and the election, the Fed was about to raise interest rates right and with Clinton now potentially winning it’s more likely that the Fed is going to be allowed to raise interest rates and that is why we’re seeing and these type of moves now. This is nothing compared to how the market is going to move today and just be aware that if you decide to trade, yes you can win lots, but you can (and likely will) get into a very very messy price action as the two candidates will likely have a drastically different effect on the market, so exit polls and news announcements throughout the day will just spin the speculation wheel again.

Do not trade today unless you are prepared to go bust until we have a result. But I am naturally cautious. The best thing to do is probably wait until tomorrow morning when we know who won. Don’t stop doing some simple technical analysis, especially if you watch the election journey. I predict a win for Clinton, somewhere around 290 votes to her and the key states are clearly going to be: Texas (Trump), New York (Clinton), California (Clinton) and Florida (Clinton). But am I going to have a trade open? No chance! 

Dax Technical Analysis

None until tomorrow.

I appreciate that it’s frustrating to see no technical analysis on this site, but it’s because it’s all a bit subjective considering what’s about to happen today.

It could be summarised by saying it could go up and it could down, but it could also do nothing. Well that just makes terrible reading doesn’t it.

Dax Support & Resistance

Daily R210606
Daily R110537
Daily Pivot10398
Daily S110328
Daily S210189
200 Day EMA10310