No report today unfortunately, I will be back as normal tomorrow
Good luck trading
We opened up to some volatility today. We took out the deviation low pretty much straight away and then rocketed north to take out yesterday’s entire value area and kiss off the deviation high. Lots of opportunity for scalpers who rode that move. The move reversed intra-day back down to the deviation low and is now settling towards vwap and the naked vpoc.
On the 5 minute chart I have been marking out divergences and at the moment there is a bit of hidden bullish divergence suggesting price can move higher. I plotted a simple H1 moving average (2 periods – median) over price to give an indication of trend and price is short term bullish above 10645 , this opens up a trade opportunity.
We are in a similar position to yesterday in that the market is still Bullish, and in contrast to the negative divergences that the MACD and RSI that we can see on the hour chart, the calculated price target of around 11,400 points is more and more on the cards. Beyond this level, the high of August 2015 is the next barrier at 11,670. Look out for the Dow Jones®, which nears 20,000 points for the first time.
Strong US jobs report on Friday once again fueled speculation about a turnaround in interest rates over there and I think the market are pricing in around an 85% probability of a hike in December. The Dax benefited from the downturn in the Euro and German products always look more appealing when the exchange rate favours the importing country.