Good morning traders!
I’m looking at 11694 as a close yesterday and three days in a row reaching lows in the region of 11575-11600.
If we look at my RSI indicator on the MetaTrader charts (find out more about this indicator here), particularly the top left chart, the daily chart, you will notice the bearish momentum on the RSI so until this trend is broken there could still be further movement down. I can accept further movement so long as we stay above 11150. On the bottom left (4-hour) and top right (1 hour) charts there are some older buy signals that are still valid from current levels.[twitter-follow username=”DaxTrader54″ scheme=”light”]
So I am still long with my Dax positions and am moderately bullish from current levels despite believing that we can move lower before resuming a move.
In addition to my previous trades from yesterday’s article I have opened a new position based on one of my RSI/twitter signals that you can see on the right menu over there —–>
The FXI predictor charts agree with the bearish momentum on the top left daily chart, but the bottom left 4-hour chart show bullish momentum, there are currently no signals on this indicator.
I am really enjoying trading using a longer time frame and taking positions on a swing trade basis. The black lines are the original trend lines and the blue lines are parallels from the black lines. Below this picture is a zoomed section.
This zoomed section below shows that we are currently in my predicted buy zone (still) and could see a bounce from this level. We may find resistance at 11800 when we hit a bearish parallel, even more resistance around the 11850-11900 zone from the previous highs and beyond that the horizontal resistance and all time highs may restrict further movement.
To the downside we can easily drop to 11500 if we take out 11575. I would be watching the 11400-11450 closely as a key support zone.
The two horizontal lines mark out the range we are trapped in and a break to the downside is looking likely if the bearish momentum on the ‘Awesome Oscillator’ is anything to go by. The 11925 level is a key level to take out to continue further moves higher especially as we have been rejected once before here.