Sentiment around equities has soured today with a larger than anticipated pullback occurring on the Dax and my current system has been caught out on the wrong side. 11875 was my first target for a long, that level came and went pretty quickly and looking at the chart the next one now would be around 11710. I have had two losses today so far, with a third buy already out there. With Gold rallying and yen crosses doing the same, you would be forgiven for questioning any buying right now, especially as we are coming off of recent highs, but is it just a Friday pullback? Is it just a dip? #BTFDUFI
Shortened article today, as I am mobile and will be travelling around London for most of the day. The good news is, I have made some good progress on my Renko system which is coming along nicely and will be included into my trading soon and there are various other improvements coming soon.
Short-term we are very oversold, below the daily S3 (pivot point indicator) and outside the Bollinger band. RSI on the hourly chart is 17 and we have pressed very firmly into support. For today, because I have already missed half the session, I won’t post the normal charts and levels, but let’s see what the US session brings, will it recover the session or compound the losses and continue to sink? It is a very compelling daily candle at the moment, suggesting that actually, this could be more than a pullback, but we have half of the session left to go, so let’s watch what happens.
Have a look at the daily chart and see if you think there is a bearish divergence between price action and the RSI.
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Back to a normal article on Monday. Good luck trading today.