Good morning traders!
We finished last week off with a very heavy looking bearish candle after shedding 300 points and printing one of the biggest losing days of the year so far. A lot of this movement can be attributed to the uncertainty surrounding Brexit. Are Britain going to leave or remain as part of the EU.
At the moment, the Leave campaign are strongly in the lead regarding issues such as immigration, public services and sovereignity and have taken a boost from the recent polls, one of which was done here at DaxTrader HQ (on Twitter – with a sample of around 320 it gave a 69% leave result). The remain camp is well ahead with the economic issues, jobs and incomes etc, generally, using past experience, the economic factors tend to trump others in the end. So whilst I suspect there will be a lot of expectation of an exit, referendum campaigns often see a late swing towards status quo.
So as we approach the final fortnight and with this level of uncertainty only likely to increase in the near future, I suspect the bears are all rubbing their hands together and getting pretty excited.
I have to be honest, as a natural bull, I am not enjoying things right now so I do not have many positive things to say. I am still clinging on to the idea that Brexit will end as a remain and markets go crazy bullish after the verdict. But right now, I am not really trading.
9750 has gone (although I will watch for a reaction to that), so the next level of major support is 9500, if that goes, 9270 and 8800 are next. If we do receive a pullback from this bearish move, we could reasonably look to target 9950. #MORE TO FOLLOW