Good morning traders!
We are still trapped underneath key resistance after once again failing to take it out yesterday and if I was a betting man, I would speculate that tomorrow may provide much of the same thing again as we sit and wait for the more important Thursday meeting. We had a bit of a rally early in the session, perhaps boosted by US data and China’s data helped out too, but most of those gains and in fact more, were given away towards the mid session before closing not far from where we opened.
I know many analysts are bearish right now and failure to take out resistance will only strengthen that argument. So I am prepared to cut my position if we find a failed move. In Germany the talk was about the money markets, particularly discussing the potential impact of the improved lending figures dampening the speculation of ECB extending. You can look at the Elliott Waves and the RSI and the other indicators if you want to speculate the next move, but the compression on the 4-hour chart is becoming very coiled now and Thursday is likely to provide the catalyst for the break, one way or the other. We are currently between the weekly pivot and R1 with a short term triangle pattern emerging here too.
So I remain cautiously bullish, perhaps a hopeless optimist, we’ll see.
I received a whole bunch of signals today, but I haven’t been at the computer any where near as much as I intended and I made a Faux Pas by downloading the wrong binary option app which has no money in the account. So a false start. I won’t look at the signals, but I may just start posting them up on the twitter feed instead @daxtradersignal.
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Dax Support & Resistance
|200 Day SMA||10620|