Good morning traders!
Nice bullish breakout yesterday and we took out a short term high just above the 11120 zone, closing above that is interesting because now on the smaller timeframe charts (5-minute or 15 minute for example) we look to have put in a double bottom around 10800 suggesting a supporting formation.
More interesting is the developing pair of pin candles on the weekly chart sitting around the median line of the long term fork. It looks to be a nice clean technical zone to bounce and the candles are beginning to show the first signs of a reversal, but once again we come back to the fundamentals and they are currently casting a suffocating fog around my decision making processes. So when in doubt I choose to sit out. And watch.
The weekly RSI is now back at 50 and this could be evidence that price is settling and buyers and sellers are finding some equilibrium.
There is not a lot of high impact news on the docket for today, but EU talks will be ongoing and remain high on the agenda for financial tabloids and blogs. The Greece debate is one that I have not really taken much of a stand on in my articles because I assume no one really cares about my opinions and because I guess I am just doing my usual of expecting and planning for the worst but hoping for the best.[wp_ad_camp_1]But I figure, why not reveal a little? So here goes; I don’t like what I have read regarding the mentality of the current anti-austerity leadership when it comes to taking responsibility for the mess that has been created in part by awful financial/fiscal prudence coupled with poor decision making from spoilt consumers presented with cheap credit and a growing import dependence. You don’t run up a credit card bill and then whinge and whine when it comes time to pay it back. You don’t go out and borrow up to your eyeballs and then complain when you can’t retire at 50. You don’t default on IMF loans and set a precedent for many more impoverished countries to follow suit believing it’s acceptable to do the same because you did. You suck it up, you make the deal and you pay your bills, regardless your own ego, seemingly delusional strategic theatrics with the lenders and the ridiculously unrealistic pledge made to voters to weasel your way into office. Get a grip guys! Just get a grip!
Dax Support & Resistance
|200 Day EMA||10830|
Interesting setup emerging on the weekly chart, could take time to materialise but it appear to be the start of a reversal. I would be watching for a break above 11500 to break the larger bearish trend.
Still currently resting around key support on the daily chart
A break out of the top of the fork would be significant in the short/mid term and more significant is a break above previous high 11500 which could be the beginning of a larger head and shoulder pattern.
Clean break out from triangle/wegde, closing outside.
My line in the sand: