Dax Technical Analysis 19/03/2015

Hello Traders!

Choppy conditions right now which is making trading in the short-term quite dangerous. I am going to avoid trading intra-day today and just look at the bigger picture.

US are delaying interest rate hikes but in the medium/long-term there are certainly going to go up. So markets can take advantage of the lower interest rates for a little longer and this is perhaps the reason for the rally. The American markets might provide more opportunity than the Dax today/tomorrow.

The big picture in Europe is the same. We are bullish and looking for buying opportunities.

I am not certain whether or not the current pullback is finished yet and I want to wait and watch. I still have a couple of long positions open, I will not be opening any short positions so if the market falls, I will just sit and watch for it to bottom out. We are currently hovering around the 11900 level and compressing into a breakout pattern and most often in these situations recently we have broken to the upside.

Let’s see what happens here

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Dax Support & Resistance

KEY LEVELSDifference
Daily R212123-191
Daily R112000-161
Value High11976-74
34 Hour EMA11940-61
Naked VPOC11939-65
24hr VWAP11919-88
Daily Pivot11907-138
Value Low11876-72
Daily S111784-108
Daily S211691-85
200 Day EMA1009618
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Dax Daily Chart

Dax Daily Chart
Dax Daily Chart

Dax Intra-day (30 minute)

The regression channel is no longer being respected and price is slicing through the top and bottom with ease, but the channel is still a relatively good guide for the general trajectory of the current trend, which of course is bullish. We are bullish as long as we stay above 11500 in my opinion.

Dax Intra-day Chart (30 minute)
Dax Intra-day Chart (30 minute)

Dax Intra-day Chart (5 minute)

Compression pattern developing and we are consolidating after yesterday. 11900 is looking like a platform to bounce from, perhaps dropping as low as 11875 before rallying higher. I believe it will only be a matter of time before we are taking out 12,000 again and moving up towards 12500 and beyond. If we take out 11850 and hold below 11900 we could see the start of a larger pullback down towards 11750, perhaps even 11675. I would imagine that if we have a large correction targets could be in the 11,000 zone but I doubt this will be the start of a complete reversal, because the fundamentals don’t support it and it wouldn’t make any sense.

Dax Intra-day Chart (5 minute)
Dax Intra-day Chart (5 minute)
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Dax Volume Profile

Dax Volume Profile Chart (5 minute)
Dax Volume Profile Chart (5 minute)
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