A very fast post today, as I am travelling this morning and will not be back in the office until next Monday.
There has been a colossal drop off in the DAX this morning. The price closed and held below the 11850 level. The first time in 2 weeks. The all important 11775/11750 zone (as mentioned in previous articles) was also breached with price eventually hitting a low of 11662.
Seasoned traders would have profited rather well from my short call yesterday as price did indeed fail to close above the 11975 area ( http://theshielreport.com/dax-intraday-levels-25th-march/ ). For newer traders attempting to buy dips, please do so with capital preservation management. If you have ‘no skin in the game’, there is no game. Risk no more than 0.5-1% of your capital on ANY trade. Even what you think is a ‘steal’ of a price can lead to big financial losses if position size is not managed correctly. As the old saying goes ‘the market has the ability to remain irrational longer than you can remain solvent.’
Key zones of resistance are 11606-11595 & 11467-11457. 11458 is also the 38.2% fib retracement of the move up from ECB QE Announcement at 10225 -12222. If the market continues to sell off over the next day or two, expect to see strong buying activity here.
Bulls, price needs to reclaim key zones (marked in yellow on Hourly chart below)
Bears, conversely need to stay below them.
Tread carefully in trading today.
