30-01-2019 Dax

30-01-2019 DAX Technical Analysis

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Morning traders and welcome to the 30-01-2019 DAX Technical Analysis. There are lots of big company earnings coming out today: Facebook, Microsoft, PayPal, Tesla, Visa, McDonalds, AT&T, so we expect some decent movements in the indices, perhaps sometimes random movements. There is also quite a bit of economic data out too: Harmonized index of consumer prices, ADP employment change, US GDP and personal consumption and of course the fed rate decision later. Be careful out there today.

DAX Outlook

The DAX remains above 11,000 but barely moved yesterday. This is likely because of the build up to the US Federal Reserve’s first interest rate decision of the year. A rate hike is considered unlikely. Tonight we will discover their assessment and confirm whether there will be any further interest rate hikes in 2019. The Fed could signal again that it will for any further interest rate increases but at the same time slower rising profits, political turmoil such as the Brexit and the trade war can no longer be ignored. So it’s delicately balanced. If we manage to break below 11159 today, it can open the door to a move towards the 11067-11091 zone. This zone is interesting because of the confluence of two rising trend lines meeting. Look on the 60m chart below. Notice as well how the price is also threatening to make progress below the upper down-sloping high-to-high trendline.

I am not necessarily bearish today, because I think with the releases, we can see plenty of action in both directions. But that zone is an obvious target to the downside.

Yesterday we saw the price action steadily progress to the high of the day following a clean pattern of higher highs and higher lows. The high of the day would be considered a point of ‘action’. Using this action point, we can draw a centre line underneath price action (the centre line in this case is the middle line of the upsloping trio of lines) and then use this centre line to help us anticipate where price will reach upon breaking that centre line. The lower line is the ‘reaction’ line and this tool is called the ACR line set (action centre reaction). This is just one of many tools that we look at every day.

The profile from yesterday is very much normally distributed, showing a regular bell curve. The value area is central to the entire profile and the point of control is central to the value area. This suggests that we have found a balanced price point.  

DAX Daily

MACD 83.6 BUY
RSI 62.32 BUY
Stochastic 77.95 SELL
ADX 18.97 NEUTRAL
CCI 72.1 NEUTRAL
Aroon 78.57 BUY
Alligator 10796.73 BUY
Awesome Oscillator 338.85 BUY
Parabolic 11124.77 BUY
SuperTrend 10970.58 BUY
     
OVERALL   BUY

DAX Hourly

MACD -2.53 NEUTRAL
RSI 46.82 NEUTRAL
Stochastic 41.35 SELL
ADX 12.19 NEUTRAL
CCI -140.21 SELL
Aroon 50 BUY
Alligator 11215.8 BUY
Awesome Oscillator -11.96 NEUTRAL
Parabolic 11275.11 SELL
SuperTrend 11238.63 SELL
     
OVERALL   NEUTRAL

30-01-2019 Key Levels

  DAX FTSE DOW ESTOXX
Point of Control :  11217 6750 24383 3159
Value Area High :  11247 6782 24540 3165
Value Area Low :  11202 6734 24326 3153
VWAP :  11227 6767 24491 3157
R2 :  11337 6855 24898 3184
S2 :  11128 6693 24091 3128
Pivot :  11232 6774 24495 3156
Camarilla Breakout (Bull) 11294 6818 24669 3171
Camarilla Breakout (Bear) 11179 6729 24225 3140

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