Good morning traders!
Markets closed yesterday with some interesting developments from the BoE and ECB bringing cheer to investors, despite the profit warning from Deutsche Bank.[quote]Minutes from the European Central Bank’s Sept. 3 meeting out on Thursday showed the policy makers have seen more pressure on inflation in recent months and acknowledged that the “overall economic situation in the euro area had become more challenging since before the summer.[/quote]
Retrospectively, buying from the daily S1 yesterday with a 20 point stop loss would have been a decent trade. Today I have placed three different orders to buy from the daily pivot, the daily S1 and the daily S2. In total I am risking 80 points if they all lose, or 230 points if they all win. I won’t be using trailing stops, these are just set and forget.
For today I am watching to see whether we get a continuation of the bullish movement up towards the 10200-10300 cluster, or whether we retrace slightly on the strong week and base build before moving higher next week. Most of the signals being received at the moment are bullish, except for the short term RSI signals which are extended and showing a need for a pull back.
My tip today, watch the pivot levels.
Support & Resistance
|200 Day SMA||10660|