Good morning traders!
Yesterday I was on my way to a gig with my band (Kadia), who played last night in Abingdon supporting Jess Vincent and we were playing in the Unicorn Theatre. This theatre is easily on of the oldest buildings I have ever played in, rich with history, going back to the 14th century. It was originally an abbey. Of course Henry the 8th was responsible for the desolution of monastries and abbeys in Tudor times, but he decided to not completely demolish this particular building (although he did succeed in destroying most of it). We played in the part of the building that still remains and it was worth the drive.
So anyway, let’s take a look at the market.
We printed an unusual daily candle yesterday, which began heavily bearish and closed as a bullish engulfing candle with a long tail. This is usually a bullish reversal signal, especially when seen at an area of support. I think 9450-9500 can definitely be seen as a support zone. So today, if this ‘bullish reversal’ is to continue, the we need to take out the high from yesterday and close above 9657 (a sticking point recently, with stubborn resistance).
We are trading around 9615 (at the time of writing this morning) and assuming we have not seen the low of the day already, we could get down as low as 9530 before finding higher prices. So I am looking for buying opportunities today, but have been waiting for the UK open to see a reaction.
Yesterday we carved out a clear double bottom at 9432 (the weekly S2) and have been short term bullish ever since. 9600 is a level to watch, because if stay above that, then we are still looking to continue making higher highs and higher lows. If/when we take out 9675, I may look to target the daily R1 for a decent trade. If we take out 9600, it’s not necessarily time to short, because we have the daily pivot at 9584 which may provide some support.
A far as a trade setup is concerned, I haven’t made any trades today yet, but I was considering a long from 9632 with a stop under the daily low, however that trade has run away from me while I was typing here.
Now I have just finished the article, I have noticed that is would have actually been a very good trade to start the day. Never mind.
Dax Support and Resistance
|200 Day EMA||10123|