Markets are holding steady in trading today after news of an emergency summit has been called for Monday, to avert a possible Greek default. From the eurozone meeting “There will be a solution based on respecting EU rules and democracy which would allow Greece to return to growth in the euro.” – see full article here
The DAX also had a big pop up during the U.S. session yesterday, after news leaked from a European source. German newspaper Zeit reported that Greece would continue to receive monetary assistance until the end of the year without the IMF – see full article here
Either way, investor’s nerves have subsided somewhat as to the future resolution of Greece’s financial situation with the DAX continuing to edge higher today. Looking at an Hourly chart of the DAX below, one can see price is now firmly back above its 200 moving average (green line in the chart below.)
(click to enlarge)
CONCLUSION – BULLISH
After price rejected the 10800 level in trading yesterday, bulls stepped in with confidence at this double bottom level and never looked back. Price successfully reclaimed the Hourly 200 MA and my bullish bias remains in place until this becomes void.
For bulls, the line in the sand today is the Hourly 100 MA (blue line in the chart above), which also comes in close to the 11018/10986 zone. Price has broken through the 11193/11174 zone with the next resistance up ahead being the highs from yesterday at 11286. The next zone of resistance above that is the 11328/11316 area, which also corresponds with an extension of the Daily range. The average daily range for the last 22 days is 235 pips, an extension in today’s session would bring the DAX price to 11315. Expect to see bulls buy retracements in price at the 100&200 MA’s on the 5 minute chart and into the 11193/11174 zone.
For bears, expect to see shorting at 11286 & 11316. For risk averse investors, price needs to break and close below the Hourly 100 MA.
Bearish targets :-
- 11080 (Today’s low + close to Daily Pivot 11079)
- Hourly 100 MA
- 10999 (Extension of Daily range)
Bullish targets :-
- 11286 (Yesterday’s high)
- 11316 (Key zone and extension of Daily range)
- 11353 (Daily S1 Pivot)