It’s the end of the month, signalling the end of the summer season and the beginning of Autumn. This is good because the season of Autumn (or ‘Fall’ if you’ve decided to invent your own name for it) tends to provide some excellent trading conditions.
Right now, in terms of the DAX, we remain bearish below 12253. Looking for selling opportunities that offer 3:1 minimum and looking for counter trend retracements that offer at least 4:1.
Yesterday we were held in a pretty tight trading, with a normal distribution on the volume profile.
|Value Area High||12024|
|Point Of Control||12010|
|Value Area Low||12003|
The two most interesting technical points are the underside of the triangle on the 240m chart and the fork median line on the 2500 tick chart. They point to an opportunity to go short. You may recall the article from yesterday. I mentioned in there that the 105 level is one to watch (noted on the chart if not written in the article text). This morning we clipped that level (on FXCM), and reached around 107 before turning around and heading back to 12047, offering a quick 50-60 points.
Today, if we assume that we will continue with the bearish momentum, we are interested in looking for a test of that area. Should that area fail, then there is more resistance at 120, 175 and 205. With a stop above the trend defining level of 253, you’d need to be careful with your trade size and profit target to ensure good reward:risk.
Targets zone is the same as yesterday. See article for yesterday
No changes (except cancelling the Ripple order for another 1150 coins, because I may need to wait for price to retrace to the level I was after. So I have some leftover USD to invest.
Balance: $471 (originally $125)