Good morning traders!
Many traders are getting chopped up at the moment here on the Dax, the market is still trading sideways and providing some conflicting signs. Friday and Monday’s candles opened at closed at similar prices suggesting the market is topping out and yesterday we had a pretty bearish day (perhaps caused by the Zew expectations), causing bears to jump in and believe that we are heading back towards 9750. It’s still possible
But DAX bulls can find many reasons why the DAX should remain relatively resilient in the next few months, despite the Brexit uncertainty: the S&P 500 has risen to a record high, the DAX P/E is more than 5 P/E points below the S&P 500 P/E, and the DAX dividend yield is 250bp higher than the euro BBB corporate bond yield. This remains attractive for investors.
So we have this stalemate at the moment.
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Today however, we are making a break for it, we gapped higher this morning on open, we then closed the gap pretty quickly and continued on to make higher highs on the lower time frames. I sent out a signal to my subscribers to buy at 10060. We are currently around 10122. A break above the Monday high will also attract more bulls on the way up to test the pre-brexit levels again. This 10122/10140 could be a good level to take profits temporarily, because we are already at the daily R2 on the pivot point indicator.
Dax Support & Resistance
|200 Day EMA||10058|