Dax Technical Analysis 15/01/2015

Support & Resistance

KEY LEVELS		Difference
Daily R2	10067	-25
Daily R1	9967	-10
Value High	9886	-21
Naked VPOC	9869	5
Daily Pivot	9866	2
24hr VWAP	9855	-14
34 Hour EMA	9842	25
Value Low	9800	34
Daily S1	9766	17
Daily S2	9665	29
200 Day EMA	9493	4

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Dax Charts

Dax Daily Charts	Dax Intra-Day Charts
Dax Daily	Dax Intra-day
Dax Volume Profile Charts	Dax Signals
Dax Volume Profile	Dax Signals

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Dax Analysis

European stocks and shares tumbled yesterday on deflation fears with many cash markets down. The futures market, however is still buoyed by easing expectations and the BoJ have stoked the fire by claiming that they will continue easing until their 2% inflation target looks stable. Draghi got a favourable outcome from ECJ, even though no-one really expected it to be unfavourable (unless you are the German Chancellor of course).
We find ourselves once more staring at the 10k level and wondering whether we can take it out and with Oil making a bounce towards $50, you’d be forgiven for thinking that it may happen this week.

On the daily chart and intra-day we are approaching the bottom of the rising trend channel and this presents an entry opportunity for Bulls. I class myself as a bull right now and will be taking a trade if I am filled at 9775 (Stop: 9690 and TP: 9990). Yesterday gave us an indecision candle, price action saw plenty of movement, by closed only marginally above the open. We are still coiling up into a triangle pattern on both charts, but more importantly on the daily chart.

The volume profile shows 9886 and 9907 as key areas to break above to continue the move up. 9766 is a key level to the downside (daily S2 on the pivot point indicator and Tuesday’s value area low). We have settled once more at vwap after a see-saw day with multiple mixed signals.

I am personally looking for opportunities to go long, my only concern is how much room there is to the upside and are we too expensive to get in at current levels.