27-04-2018 Dax Technical Analysis

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Yesterday we saw the Dax advance +110 points after seeing a bearish reaction at the recent April highs. If we take a look at the daily chart (image 1 below) using a volume profile, you can see we have a low volume area above the current price. This low volume area was created during the January/February meltdown, so the question is whether or not the price action will be repelled from there.

The low volume area is somewhere between 12800-12900.

The major swing lows were recently broken as the trend defining level was taken out. However, price action has bounced from the lows and seems to be recovering the majority of those losses. Therefore the minor swings are currently bullish.

12550 and 12520 are levels to mark out as the current minor trend defining levels.

27-04-2018 Dax Video

27-04-2018 Dax Charts

Image 1 – Daily Chart

• The price is back above the median line – notice how price tested it again from above
• Large low volume area above recent highs

Image 2 – 250 tick chart

• Price action ranges between 12385 and 12483 until nearly 3pm
• From here price trends up to the daily highs
• The pitchfork contains the price for most of the remaining session

Image 3 – 20-minute chart

• The second pitchfork’s median line has been ‘zoomed’, so a retracement seems likely
• The first pitchfork’s upper median line parallel is being tested

27-04-2018 Dax Key Levels

27-04-2018

• ECB leaves key rates on hold as expected
• EU Barnier: Repeats UK transition is not certain until a Brexit deal is reached
• ECB source: Policymakers keen not to upset market expectations for end QE this year