Good morning traders!
So here we are! We have a bullish technical breakout, the fundamentals are now aligning neatly, there seems to be an end in sight to the Greek talks and I am looking to pull the trigger on a long position. It’s been a while, I almost forgot the password for my trading account.
The rumour is that the deal will be signed, sealed, delivered so one phrase springs to mind at times like this: buy the rumour and sell the fact.
Not a lot more to say today, except I think bears may be in trouble at the moment and if momentum continues then we could see the beginning of massive reversal and resumption of the longer term bull trend. That’s ideal for me because I have been patiently waiting for exactly this.
Dax Support & Resistance
|200 Day EMA||10839|
It doesn’t matter which chart you look at, there is a bullish breakout. The daily chart below shows us taking out a key level of resistance as this 11500 level was looking to carve out as a lower high and continue the downtrend. This breakout kills that trend.
The 4-hour fork is now broken too and the bounce from 10850 has gained a massive amount of momentum. The RSI is a little overcooked at the moment, so I would be waiting for a pullback before entering.
The 30 minute chart below shows the weekly pivot levels and we are already passed the weekly R2. I don’t think we will see us getting near the weekly R3 but at the current rate of momentum I wouldn’t be surprised. I would like to see a pullback nearer to 11300. Longer term I can see a retest of our all time highs.