Dax Technical Analysis 04/02/2015

10900 target hit!!! So we have hit the 100% extension from the oct/dec swing and now we need a new target.

DAX NEW TARGET: 11700 by April

Pre-market plays for 04/02/2015

The bearish play today would be to bounce off the top of the channel and pullback to around 10780, I can not see it falling much further unless some news release adds volatility. A good entry would be to short from around 10960 with a decent stop above the ATH.

The bullish play is more my ‘cup of tea’ and I am looking at ordering a few longs starting with naked vpoc, YVAL and S1 with stop below the S2. It’s a bold play, but I am happy to cut at S2, save some cash and reorder more longs further down. I will keep the leverage small, but I am planning on adding to positions and keeping them as long as I can.

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Dax Support & Resistance

KEY LEVELSDifference
Daily R21106336
Daily R11099750
Value High10951167
Daily Pivot10920122
Naked VPOC10917176
24hr VWAP10916164
Value Low10883187
Daily S110854136
34 Hour EMA1084998
Daily S210777208
200 Day EMA964112

Dax Daily Chart Analysis

We touched the weekly R2 on the daily chart yesterday and are still at the top of the channel. We crossed the 70 RSI briefly but closed at 69.75, so plenty of ammunition to support a bearish today or at the very least a pullback. But, quoting someone whom I can’t recall on stocktwits: “you try stopping this train!” and I agree as momentum is an animal that can not be potty-trained. This sentiment is heavily rooted in my decision-making.

Dax Daily Chart Analysis
Dax Daily Chart Analysis

Dax Intra-day Chart Analysis

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We spent the entire day above the 34 period hourly EMA, which is now beginning to point up, and we did not even test the bearish levels yesterday. We took out the first S1 level after making the new high and hitting the 10900 target, closing just under the S1. So overall a pretty convincing bullish day. 11000 looks to have security on the door in the form the daily R1. Perhaps a bull flag is also emerging here so the S1 could be a decent entry if current levels are not taken.

Dax Intra-day Chart Analysis
Dax Intra-day Chart Analysis

Dax Volume Profile Chart Analysis

There is a little low volume pocket around the 10935-10950 level which may provide some quick points.

The vpoc and vwap are currently identical which just adds additional support to provide a platform to bounce off of. (Ignore the arrows, they have re-painted).

Just watch a fall through the YVAL (value area low), it could open the door to the S2.

Dax Volume Profile Chart Analysis
Dax Volume Profile Chart Analysis
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