Good morning traders!

Yesterday’s statements from British Prime Minister Theresa May seem to go down well with the markets.  In her speech yesterday, our Prime Minister had suggested a more conciliatory tone than Europe expected and this made for relief, which still continues today. Many expected the “hard Brexit” line, however, caution remains the order of the hour. In the next few days, there are still enough uncertainty factors.

From Friday on, there will be a Republican President of the United States of America who will lead the destinies of the ‘world’s greatest economy’. And the financial world is eagerly waiting to see what the economic plans, the political outsider will actually bring in. After his surprising election victory, Wall Street had set a record rally in the hope of an economic boom. This means that the markets have advanced, and now Trump has to deliver, failure to do so will almost certainly lead to a heavy correction.

My favourite quote of this whole political fiasco so far is: “Make America Great (Britain) Again.” Deeply offensive to my American friends, but I mean it purely as banter.

Dax Technical Analysis

I have been interested in the 11450 level for a week or two, but yesterday I was looking for 11425 and we just missed it, by a point or so before rallying back inside our recent range.

On the daily chart, we posted a pretty interesting rejection candle as price broke out of the recent range, to the downside, but was rejected just above 11425 to bring the price back into the range. If this type of candle was shown after a trending move it would perhaps have more significance.

On the hourly chart, we have just touched a previous buy zone, so brave (or foolish) bulls, depending on which camp you are in, have an opportunity to go long, assuming that the previous range still respects the range.

The market sentiment is bearish and many traders on the forums and chat rooms a likely the opportunity to short, I, however, remain a bull, for my sins. 11530-11550 is still a fairly significant zone with plenty of demand and the 11630-11650 zone has plenty of supply, so while the market continues to range, I am looking at opportunities to buy low and sell high.

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Dax Support & Resistance

KEY LEVELS
Daily R2 11683
Daily R1 11617
Daily Pivot 11521
Daily S1 11455
Daily S2 11359
200 Day EMA 10647

 

Dax Charts

03 H1 Dax Chart

03 H1 Dax Chart