Good morning traders
I am at a festival in Cambridge all weekend, which starts today, so I am mobile and using my phone signal to give me this internet connection. It’s unlikely that I will have power in the laptop tomorrow to provide a report, so if I can not publish anything from my phone, I will have to take tomorrow off and not publish anything.
Dax Technical Analysis
What a rally this morning, we started to look like we wanted to sell off when price broke down below 10270, but instead it reversed and began a 100 point rally to reach just short of the daily R2 and the weekly R2. We have now taken out two of the three peaks and we must surely now be heading up to the third.
So what is supporting this bullish momentum? Many reasons, the Fed have said that near-term risks have diminshed, BoJ are pointing towards further easing and ECB leave door open for further easing, so the easy monetary policies are keeping the bullish sentiment buoyant. USDJPY could be an interesting pair to watch.
We are short term bullish above 10260
10315 could be an interesting resistance cum support
A break above the daily high today opens the door to the 10486 high from earlier in the year
The recent bullish wave has retraced over 100% of the Brexit slump
Dax is still a long way short of the All Time High, so there is head room to move into above, given the easy monetary policies. China, Brexit and geo political issues are the counter arguement.
A break below 10260 can open up a move lower to 10150.
You could argue that we are seeing bearish divergence forming on the 30 minute chart (multiple instances of it), which when combined with the Daily chart resistance zone that we are heading into, and the accelerated bullish move this morning, we are set for a large correction, but technical analysis allows anyone to see what they want in the charts. Right now, I will continue to follow the trend until we break the trend defining levels.
No charts or support or resistance today.
Bring on Cambridge Folk Festival!