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Good morning traders!
We’re approaching the end of the month, the end of the week and the start of a three day weekend, so I wouldn’t be surprised if the market sees little action today.
The most interesting piece I have read is the evidence that China is still seeing a cyclical recovery as profit growth picked up in March. The growth went from -4.7% in Feb to over 11% (year over year) in March and people are pointing to higher prices for Chinese companies and higher volumes. Global metal prices increased further in April and as producer price inflation is highly linked to metal prices, its likely this recovery will continue. The higher profit growth should support Chinese equities and I would like to see this cascade into the other equity markets as well. I also like the underlying QE theme to continue throughout early May. So I still have to remain bullish above 10075.
The Dax is still at an important level right now as we have recently tested previous resistance (10140) and this seemed to create a level of support. If the support holds, like I want it to, then we can continue to build a foundation here and grow further to take out the weekly high. However we are short term bearish and are still trapped inside this bearish trend channel (or bull flag). If we take out 10140 then we open up a move to 10075 and below this; 9900 and then we re-evaluate.
DaxTrader Updates
The DaxTrader RSI system trial is coming to an end. Thanks to everyone who has supported in getting the bugs ironed out. Feel free to drop any feedback to me on the website, twitter or email. Please be aware that the new pricing takes effect from the beginning of May £94.99.
The DaxTrader signals delivered a decent trade yesterday. It’s been very difficult to find good buying spots recently.
Dax Support & Resistance
KEY LEVELS | |
Daily R2 | 10436 |
Daily R1 | 10326 |
Daily Pivot | 10222 |
Daily S1 | 10112 |
Daily S2 | 10008 |
200 Day EMA | 10183 |