Dax Technical Analysis 12/03/2015

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Good morning traders!

After four days of bond buying ECB will continue buying €3billion worth of bonds every day. No major geo-political news, Greece still looming, but under the carpet at the moment and the outlook is pretty much the same, we are still looking for long entries, remaining cautious of pullbacks.

I found this article interesting earlier: Read about Draginomics

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Dax Support & Resistance Levels

KEY LEVELS		Difference
Daily R2	11907	-164
Daily R1	11871	-77
Daily Pivot	11813	83
Value High	11813	-21
24hr VWAP	11797	50
Naked VPOC	11795	92
Daily S1	11777	170
Value Low	11767	98
34 Hour EMA	11744	70
Daily S2	11719	330
200 Day EMA	10017	18

 

The Indicator (Daily Chart)

Carrying on from my indicator review article.

Below the daily chart is strongly Bullish so my strategy is telling me to look for buying signals only, I will use the 30 minute chart to find possible entries.

The Indicator – 30 minute Chart

We have a conservative buy zone between 11631 – 11689, which would involve us taking out all key support for the day, or a more aggressive buy zone between 11689-11748 which would also be a 34 hourly EMA bounce.

More about this indicator here: https://thedaxtrader.co.uk/forex-indicator-predictor-review/

 

Dax Daily Chart Analysis

We have broken through the top of my bullish channel and I have drawn a couple of outer parallels. I like the idea of us eventually coming back to test the breakout of 11574, but I can’t say when that might be. After yesterday’s massive candle today was more reserved.

My target of 12k is nearly hit. I will be taking profit there. I mentioned on Twitter that Dax is heading to 12k and EURUSD is heading for 1.05. Many expect the EUR to bounce there and I wonder if the Dax pulls back from 12k.

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Dax Intra-day Chart Analysis (30 minutes)

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We are currently being held under the weekly R2 on the pivot point indicator after testing it twice and closing on it last night. A break above this level could signal a push towards 12k. Pullback targets are fib zones from the fractal swing, which could then provide a good long entry. Overall, we are bullish above 11450, arguably 11250.

Dax Intra-day (Micro 1 min chart)

Compression signalling a break out is about to come along.

 

Dax Volume Profile Analysis

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Mixed signals everywhere, if I was a betting man I would like to draw a box around price and trade the breakout. The deviation bands are pinching in. A break higher through key resistance could take us to 12k, a break lower could take us further back towards the weekly composite vwap which is down at 11601. And Friday loves to give us a reversal… If it breaks lower, I am not touching it.

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