Good morning traders!
I hope you guys had a lot more success on the market yesterday than I did. Blue Monday is supposed to be a miserable day and miserable it seemed to be. Trading action moved sideways and coiled up ready for a breakout and it seems that the break has happened first thing this morning, rallying nearly 200 points from the Monday close.
This morning we gapped higher and made an early morning high of 9747, it does seem that markets are looking to relieve some of the bearish pressure and rally a bit further so bears can possibly get short from better positions. In the short term though I am watching 9680 as a break below this could trigger a closing of the gap.
Targets to the downside would be either high from yesterday 9658 or a deeper target could be the value area high from yesterday at 9567, somewhere in the middle of those would be a fibonacci retracement.
Yesterday provided a decent swing opportunity for bulls with a stop under the major low from October looking to target somewhere near 10k. Current levels don’t provide a decent risk:rewards setup for that kind of trade, but we are coming up to previous support from trading earlier in January so there may be a shorting opportunity soon.
Dax Support & Resistance
|200 Day SMA||10597|