Good morning traders!
I managed to get a break from the markets over the last 4 days or so, which is always good to recharge batteries. I hope you all had a great weekend. I may have taken a break from the markets, but it doesn’t stop me keeping an eye on the geopolitical issues which continue to develop. The North Korea Ambassador warned UN that US has created a situation that could cause thermonuclear war to break out at any time. Great. Just what we all want……
So the market provided a gap higher this morning, which has now closed and there are a couple of points to watch. First of all 12050 is a good level of support, previously tested a week or so ago. It is the 61.8 retracement from the March low and April high. We are currently around that level now, however the current hourly candle is aggressively bearish, engulfing the opening candle and threatening to take out this level.
On the hourly chart we are in a bearish trend channel, currently just below the mid point and a continued break below the 12050, opens up a move towards the 11975-12000 level. Buyers would likely be interested at either the current levels or somewhere nearer to that zone.
On the 5 minute chart, we are below the Bollinger band, we have just tagged the daily S1 (pivot point indicator) and volume is beginning to pick up. The most recent 5-minute candle looks to be a rejection candle, so it offers buyers a good reward to risk opportunity to buy there, stop loss under 12040 and targeting 2:1.
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Dax Support & Resistance
|14 Day ATR||115.95|
|200 Day EMA||11256|