Good Morning Traders!
A slight bullish pullback started yesterday after six consecutive bearish sessions and I wonder if maybe we can go a little higher before triggering another big trade to the downside. On Friday we put in an inverted hammer suggesting that it could be at the bottom of a trend, we just needed to see some confirmation from yesterday. Yesterday we engulfed Friday’s candle body after initially gapping lower and I think that’s a pretty strong signal. My main concern is that the rest of the world are still struggling, so is now a good time to be buying the Dax? Probably not…
I regularly hear ” just look at the charts, fundamentals don’t matter, trade what you see”. Right now it’s too early to say if we are watching a reversal forming, it could just as easily be a fake break and actually we collapse through support and test the Oct lows.[wp_ad_camp_1]
I had a pretty good day yesterday, I added 1.5% to the account through 7 trades gaining 131 points taking trades from my various indicators and it’s nice when days flow so easily like that. Follow me here for more trading details:[twitter-follow username=”DaxTrader54″ scheme=”light”] [twitter-follow username=”DaxTradersignal” scheme=”light”] [wp_ad_camp_1]
Dax Support & Resistance
|200 Day SMA||10643|
The daily chart appears to be engulfing the previous candle, but this could easily be a fake break and turn back down again. I think fundamentals should lead the longer term bias and they don’t look great, this is possibly more a relief rally than a reversal. Relief targets could be 10,200, but I would be surprised if we got there.
We have created a diamond formation on the H4 chart, which could be the start of a lower low, suggesting a pullback towards the level suggested above. Trade setups for large SL would be to go long with stop under January low and target 10250.
Is this a triple bottom? I guess not because we have already pierced it, but we are tagging the 34 hour EMA line, from the underside, all the way down at the moment.
This chart below is interesting because of the conformance to the fibonacci retracement levels and now we have closed just around the 34 hour EMA mentioned earlier.
I am watching for a pull back towards the daily pivot, with a long from there targeting the highs from yesterday.