The DAX 30 remains bearish below 10680.
There is still a significant slowdown in China’s growth momentum, showing how necessary an agreement was in the trade dispute with the US. There is also the partial budget shutdown in the USA which can have some knock on effects globally. The problems at the beginning of the year are the same as at the end of the year. In summary; the economy is weakening, interest rates are rising and we are some distance away from an attractive scenario for equities.
But like always, those conditions can provide the momentum for a recovery, because when the mood reaches its low point, prices tend to go up again. And demand is created once more.
I still believe that we will see growth this year for both the US and Europe.
Key Support & Resistance Levels
|Point of Control :||10570||6748||23269||2991|
|Value Area High :||10597||6752||23312||2997|
|Value Area Low :||10552||6709||23216||2980|
|Camarilla Breakout (Bull)||10693||6753||23367||3015|
|Camarilla Breakout (Bear)||10474||6702||23126||2958|
DAX 30 Trading Strategy Review
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28th December 2018 was the last official trading day on the DAX 30 from last year. During that trading day, the morning session was the most interesting. There were two very strong opportunities right at the beginning of the session. Both of these two opportunities were valid buy signals. And both of those two opportunities would have hit target.
I did not take either trade on the DAX 30, but I did take something similar on FTSE. Even if I did trade the DAX 30 signal, I would have taken only one of the trades, not both.
This would have been an excellent start to the day and I would have been happy to walk away from the session at that point and call the day finished.
So today, I will be looking for some opportunities in the early part of the session. I will use a three bullet rule.