Resistance: 9950, 9996, 10,000
Support: 9877, 9858, 9845, 9814
Signs are the we may be getting close to a temporary top here and moving into another consolidation or correction phase.
We have been pretty volatile today and there have been many fake breaks to confuse a trend trader. Ultimately at times like this, low leverage is the best way to tackle the volatility and preserve bankroll.
It’s still a little overbought for me to consider a long from current positions, I favour a break to the downside from current levels, perhaps correcting towards 9700 before lifting again. But I am also torn with the idea that we are going to have another bull day tomorrow and correct Friday.
I haven’t posted any trades today, I have been building a way to copy my trades and short term trading on my own. I will back shortly with more details.
Good luck trading
I could copy and paste yesterday’s article here, but I won’t. Another bullish start to the day. Another new high. Another new set of supports to protect any possible correction today. Another step taken towards 10,000 and we really are starting to now believe that this level will be hit very soon.
Trading using my plan on this market is becoming tricky because I can not spot any opportunity that is giving me the reward:risk ratio I want. So instead I am being sucked into playing the scalp trade game and from my experience I know that the Dax can very easily chew you up and spit you out if you are scalping because the volatility is so high. The rewards are enormous, but the risk is crazy. Suffice to say I am not the most comfortable scalp trader, I prefer taking much lower leverage trades and playing the longer game (in day trading terms anyway) to manage my risk.
My strategy today will be to buy the dips, using the 5m chart and watching how price reacts to support levels. I have a pin bar indicator set up with an alert so this will be interesting to use today.