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Good morning traders!
Happy star wars day. I appreciate just how nerdy that sounded, but I don’t really mind.
We had a strong bearish day yesterday closing around 9937, completely engulfing the previous retracement on Monday and breaking through and closing under the 10,000 level, again. On the daily chart we are approaching some significant channel support and a break through that will likely open up another slide to the downside. MACD momentum is picking up too.
There are a number of sell signals on the different time frames, the difficult part is finding a good risk:reward setup. A bounce at S1 could be an interesting spot to short on the way towards S2, or just a break underneath S1. We also broke the sideways channel yesterday (to the downside), so if price retraces up towards the underside of that channel, that could also be a good spot to short.
It’s difficult finding good buying opportunities at the moment, and t may be worth inspecting the SPX for a short as well.
Dax Support & Resistance
KEY LEVELS | |
Daily R2 | 10217 |
Daily R1 | 10077 |
Daily Pivot | 9997 |
Daily S1 | 9857 |
Daily S2 | 9776 |
200 Day EMA | 10175 |