Happy New Year!!
2017 was an incredible year for stocks, especially in the US. I'll be amazed if 2018 is anywhere near half as good, though for traders who have the advantage of making money whichever way the price goes, it should be a year full of fantastic opportunities for making money.
It could even be that we saw the highs in the Dow and S&P last week, at least for a while, as anyone can see that from a technical perspective, the price is way overbought. I think it needs to come down a fair way for buyers to come in again to perhaps take it to new levels
As for the Dax, she is falling, not that you need telling. One has to look at the Daily chart to see where the next level is support is likely to be, and that for me is my Daily 200sma which currently sits at 12,700, with the 200ema at 12,668. Either of these should offer some kind of support I think if the price gets there this week, lifting it back up towards the 100sma which has already been broken.
Going to the weekly chart, I have potentially strong MA support at around 12,400, and so we'll have to wait and see what the price does if it drops to that level, but if it does break lower, then there is the potential for the Dax to fall back down to 11,000 or so over the coming weeks.
As for the first trading day of the New Year tomorrow, the price double bottomed on S3 pivot level on Friday evening, so there may well be some movement during the Asian session, and so right now I won't even try and predict where the price is likely to go from here, though everything should be a lot clearer by the time Frankfurt kicks off at 7am London time.
2017 was an incredible year for stocks, especially in the US. I'll be amazed if 2018 is anywhere near half as good, though for traders who have the advantage of making money whichever way the price goes, it should be a year full of fantastic opportunities for making money.
It could even be that we saw the highs in the Dow and S&P last week, at least for a while, as anyone can see that from a technical perspective, the price is way overbought. I think it needs to come down a fair way for buyers to come in again to perhaps take it to new levels
As for the Dax, she is falling, not that you need telling. One has to look at the Daily chart to see where the next level is support is likely to be, and that for me is my Daily 200sma which currently sits at 12,700, with the 200ema at 12,668. Either of these should offer some kind of support I think if the price gets there this week, lifting it back up towards the 100sma which has already been broken.
Going to the weekly chart, I have potentially strong MA support at around 12,400, and so we'll have to wait and see what the price does if it drops to that level, but if it does break lower, then there is the potential for the Dax to fall back down to 11,000 or so over the coming weeks.
As for the first trading day of the New Year tomorrow, the price double bottomed on S3 pivot level on Friday evening, so there may well be some movement during the Asian session, and so right now I won't even try and predict where the price is likely to go from here, though everything should be a lot clearer by the time Frankfurt kicks off at 7am London time.
P.S (maybe ...)(be=break even) {image}
