Good morning traders
Great early morning action this morning, plenty of opportunities to gain some points on the strong rally. I managed to grab around 45 or 50 this morning but probably got out a little early.
The charts show plenty of technical reasons for a bounce today and these early signs suggest that this is exactly what we are getting.
Some analysts are suggesting that EURUSD will rise this year regardless of where oil prices trade and also that equities appear oversold, considering growth momentum and even say that the global business cycle could be about to turn more positive.
So bears will be looking to take on a dip buying strategy today and in terms of targets, looking for around 9,7xx. I imagine that bears are delighted right now, expecially after the close on Friday, but they probably realised that a pullback is needed before getting in again. 9,7xx is once again probably on their radar too.
Dax Support & Resistance
|200 Day SMA||10606|
We have reached the bottom of the weekly trend channel[wp_ad_camp_1]
We have actually broken below the 100% extension and are still below the 2009 pitchfork[wp_ad_camp_1]
In the bottom half of the 4-hour regression channel and briefly touched the lower bollinger band.[wp_ad_camp_1]
The picture before the open this morning suggested that in order to retain this channel, we need a bounce. The fractal was confirmed on Friday and we have already seen the bounce happen.
Finding the next shorting opportunity may have to wait a little while[wp_ad_camp_1]