Good morning traders!
Friday! Potential reversal day! But are we ready to reverse, or has the move already started to happen?
It feel like we have been really choppy this week, I had 9320 draw as a line in the sand, break below we are bearish break above we are bullish, but price seems to have made a mockery of that level and oscillated around it providing false signals and chopping me up.
Today we have already seen a decent move high, reached the daily R2 but the signs are that we want to move up higher, especially with the S&P and FTSE rallying and the EURUSD still threatening to take out 1.10. So the dip buying strategy from yesterday would have worked nicely.
9582 is an interesting level and this is the high from last week, we are stalling at it currently, but the S&P has already taken it out comfortably. So there is divergence here and a potential trade setup, especially as the EuroStoxx has already broken above the high too. So I might jump in and take that, despite being overbought.
On the daily chart we are still below the long standing pitch fork and seem to have carved out a major low,. You could argue that there is an inverse head and shoulders pattern emerging and price is currently hovering around the neckline. On the 4 hour chart you clearly see the highs from last week in sight, we were rejected on the first attempt today, suggesting a pullback is likely before attempt number two. The 30 minute chart broke out from the bullish trend channel but has pared pretty much 100% of the losses, reaching last week’s high.
Dax Support & Resistance
|200 Day EMA||10305|