Good morning traders!
Strong bearish day yesterday as we lost yet more ground and closed under 10100 for the first time since breaking out towards the end of May, once again we find ourselves underneath the daily 200 EMA. Various reasons have been found such as slowing global growth, increasing uncertainty surrounding the UK-EU referendum and the recent strength of the euro.
The Draghi speech moved the markets yesterday as he reiterated that monetary isn’t going to be enough to fix the problem and urged governments to step up the reforms. This comes a day after the ECB began the CSP Programme (Corporate Sector Purchase).
Right now I am wondering how strong a support area the 10030-10040 zone turns out to be, if it holds then we have a near perfect entry for a decent move, however if it goes, then you have to imagine there is plenty of room below to move into.
However you look at it, bearish or bullish, trading conditions are tricky because there is no real trend to follow. We have oscillated around the 200 day EMA for quite a few days and it’s choppy out there. Personally I am still bullish, but only just, I still think we are slowing down into the Brexit build up and are likely heading into a wider coiling pattern. If we break below 10040, we can open up a move towards 9900, from there we can go back up to 10100 and continue forming the wedge.
Yesterday I made five trades, I think, pretty much breaking even, in fact I think I lost 10 points, but it was frustrating. Friday tends to be an interesting day for trading, especially when there is not much high impact news on the calendar. So I expect some digestion of the Draghi speech and a reaction to the move yesterday.
For those who have asked recently, yes, I will be publishing my trading/signal results on the website. I will publish a link when that’s ready. I am also in the process of building version 4 of the DaxTrader RSI software, with some great additions like ATR stop loss, pending orders instead of trading at current price, stop losses under recent lows, or above recent highs and improving a few bugs trading logic. So there is still lots to keep me busy.
Dax Support & Resistance
No levels today, marketscope is down
No charts today, marketscope is down