Good morning traders!
It was a strange day for trading yesterday with most of the move happening first thing on a gap open higher. The gap never closed and the remainder of the trading session, right through to the evening, was pretty static. I took a trade around 9 o’clock this morning too short, I took 43 points and closed at the daily pivot, I’m now looking for another short to break through yesterday’s gap.
The market now seems to be in a bullish period but buyers are probably looking to get in at lower prices around about 9050, so today they could be a pullback trading opportunity before going along and aiming up towards 9400.
The daily chart posted a pretty bullish candle, but it failed to break 9250 which was the previous level of support from January 20. We gap opened first thing this morning taking out the high from yesterday but three times failed at around 9267 and as I write this report we are now down to the daily pivot.
The four hour chart has just missed target in the Fibonacci pullback zone between 9336 and 9475 and is currently looking bearish, stochastic indicator is overbought and lines are pinching together, which is close to a sell signal. On the 30 minute chart, the stochastic indicator looks choppy, we have approached the weekly R1, pulled back from that, and seemed to have bounced off the 34 hour EMA.
DaxTrader RSI Automatic Trading
Here is a look at the RSI indicator in action, the automatic trading software would have taken these opportunities. For more information on this, go here.
Dax Support & Resistance
|200 Day EMA||10377|