Dax Technical Analysis 26/02/2015

Morning Traders!

A later than usual report today, tiredness got the better of me and I decided to go to sleep at a normal time. However not a lot has changed in terms of sentiment from yesterday. I hope you have all taken your positions.

I mentioned yesterday a breakout over 11215 I would be long. We almost got it yesterday, but price retraced. Now we have it. I would love to see vertical movement to 11400 and I personally think that long-term we could get to over 12000. It might take a few months, but just look at how much money is flowing into European equities right now.

Here’s a great link to read: http://blogs.wsj.com/moneybeat/2015/02/25/eurozone-equities-in-new-cycle-euronext/

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Dax Support & Resistance Levels

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KEY LEVELS
Daily R211251
Daily R111226
Value High11211
Naked VPOC11202
24hr VWAP11201
Daily Pivot11200
Value Low11191
Daily S111175
34 Hour EMA11173
Daily S211149
200 Day EMA9870

Dax Daily Chart Analysis

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I think 10300 would be a difficult level to breach today, if we get up there. That would have taken us strongly through the daily R2 and touch the top end of the rising channel, in fact it would be the daily R3 level and it’s unlikely (not impossible) to exceed that. There is still headroom above on the pitchfork and RSI is still currently under 70, although I am beginning to ignore the oscillators at the moment.

Dax Daily Chart
Dax Daily Chart

 

Dax Intra-day Chart Analysis

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We have had the breakout from yesterday’s range and it seem we are moving up to the next zone. The price action behaviour has been consistent; bullish breakout, consolidate, bullish breakout, consolidate etc. We are currently using the R1 as support and if that holds, I see us moving up to R2. I suspect a lot of people who have gone long with swing positions recently, will be placing stop losses somewhere between 11150-11170 and targeting 25000 or something. Who knows how far this will go but up is a very high probability. There is not much more to say really. Expect there to be down days, perhaps even a couple in a row, but if we get them, I am buying!

Dax Intra-day Chart (30 minute)
Dax Intra-day Chart (30 minute)
Dax Intra-day Chart (5 minute)
Dax Intra-day Chart (5 minute)
Dax Intra-day Chart (1 minute)
Dax Intra-day Chart (1 minute)

 

Dax Volume Profile Chart Analysis

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Small compressed trading range yesterday, suggesting another possible breakout. There was a huge amount of trading volume around the 11200 and we have already taken out the naked vpoc and value area low today, bouncing much high and breaking back out through the top of the value range high and past the deviation high. There could be a pullback towards vwap (currently around the 11202ish level, but climbing) before a further move higher. The low volume pocket from Tuesday remains intact, price did not want to trade down there, but I think it will still drop fast if we break down there on a large pullback. Remember that area, mark it on your chart. It could reward some very quick points.

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