One of the largest gaps we have witnessed in a number of weeks/months even years perhaps, let’s take a look in this DAX MARKET SUMMARY 31/10/2014.
The main headlines for the day include: Dollar climbs to yearly dollar high against the Yen, Bank of Japan announces massive stimulus move (80 trillion yen), Nikkei closes at 7 year high, oil continues losing stream amid surplus.
DAX MARKET SUMMARY 31/10/2014
After a massive hike beyond the key level of 9200-9250 the market will need to regroup before the next set of leaps up towards 9750. With ECB prepared to print money, Japan already doing so, US’s relentless appetite for stocks and the fact that the US markets seem to have recovered all losses, we have no room currently for bears. They are likely going to be thrown to the side. Any major bearish reversal is going to have to wait.
In the short term, I would wait for better buying opportunities. I am buying in the 9150-9250 zone which means I will sit tight and wait for the price to settle a little, close some of the gap and regroup before building higher again. We may not head that far down first, we may even break out again and relentlessly pull towards 9500, in which case I might add some buy stop orders in level 94xx to expire Monday evening if not already triggered.
My charts are down for maintenance so that’s all I’ll say for this evening, enjoy your weekend and trade safe. If you want to learn more about technical analysis, view the article library Learn more about the DAX
