Good morning traders!
- The triangle/wedge formation from Monday was comfortably broken to the upside yesterday
- Other equities currently are rallying past their 2016 highs, Dax has catching up to do
- Dax break above 10060 can open up 10110
- Break above 10120 can open up 10250
- A pullback towards the daily pivot could be a good buying opportunity for bulls
- But we are on the underside of previous resistance so bears may look for a failed breakout
The markets are rising in line with China it seems right now and as it has broken through 10,000 it seems to have the 10110 high is its sight. With most of the other stock markets reaching yearly highs you would imagine the Dax will play catch up and extend this current bullish run.
Although the long trade seems to be the obvious option at the moment, we are running into a number of different resistance levels so I am watching how we react to these. Previous highs, yearly high, 200day EMA etc.
Oil is interesting to watch at the moment, as it Gold and EURUSD. It may help give some clues to support your bias.
I think right now I am going to avoid making many trades and wait for a clean break above key resistance and then buy dips or wait for a rejection signal.
Dax Support & Resistance
KEY LEVELS | |
Daily R2 | 10204 |
Daily R1 | 10112 |
Daily Pivot | 9950 |
Daily S1 | 9858 |
Daily S2 | 9696 |
200 Day EMA | 10169 |