The results of the Greek referendum are complete, and it was a landslide victory for the ‘No’ voters. 61.3% of the Greek population voted No to more austerity in exchange for extra financial bailout assistance.
The fate of the country now lies in the hands of the ECB and Angela Merkel. The German Chancellor is due to meet French President Francois Hollande in Paris today ahead of an emergency summit in Brussels tomorrow. The ECB’s governing council are also convening today to hold a conference call over the future of how long to keep Greek banks afloat. The ECB will need to stump up more cash and raise it’s ELA funding ceiling (Emergency Liquidity Assistance) to stop bank ATM’s running out of cash – see full article here
Looking at the Hourly chart of the DAX below, one can see price gapped down on the open of the Asian session last night. Price hit a low of 10714, a total trading range of 392 pips for the day so far. When European bourses opened, bulls stepped into this uncertain marketplace and drove price higher.
(click to enlarge)
CONCLUSION – NEUTRAL
Price is currently in a bull market from a Daily perspective but below it’s 100 & 200 moving averages (blue & green lines in the chart above) signalling the bears are in control. However, since the start of the European session this morning, price has been edging higher.
For bulls, price intraday really needs to stay above the 10856 level (see last week’s article for more detail on this price) with the aim of bulls looking to fill the gap at 11106. However, if price does move higher expect bears to stand in the way of a gap fill as the Hourly 100 MA resides below (11063 currently). For the risk averse, 11193 needs to be taken out, which is also around the Hourly 200 MA.
For bears, opportunities to short reside on pullbacks into the Hourly 100 MA, 11018/10986 zone or on a break of 10856. For the risk averse 10714 needs to be taken out.
Bearish targets :-
- 10893 (Daily S3 Pivot)
- 10856 (Bottom end of key zone + 38.2% retracement level on Daily chart – see link above)
- 10714 (Daily low)
Bullish targets :-
- Hourly 100 MA
- 11106 (Gap fill)
- 11145 (Daily R1 Pivot)