Current Bias: Christmas, people are probably on holiday, still Santa run
Support: 9778, 9755, 9743, 9684, 9570
Resistance: 9797, 9823, 9839, 9868, 9892, 9915, 10032
Talking Points: ECB QE – which assets to buy, Russia, Oil, Year-end Bounce, CHRISTMAS
On the daily and H4 chart we look bullish, we recently corrected 50% of the recent swing high after an 850+ point sell off in 6 days and look set for a final push to re-test the psychological 10k level. 9892 was the high from September and may again provide stubborn resistance. If you draw a pitchfork from the Oct-Dec swing with a handle at the Sept high you will notice that price reacted to 9919 on Friday, so the fork will again provide further resistance today and potentially for the rest of the week. If we can take that out early this week, the chances look much stronger of us testing the 10k level.
On the H1 and m30 charts we have been making higher highs and higher lows since the 16th which confirms the current bullish trend. We are currently above the 34 period hourly EMA but there was a T/K cross using the Daily Ichimoku data on the 5 minute chart, signalling a potential trend change, although this may be a delayed/lagging reaction to the recent correction.
Looking at the volume profile there is a low volume pocket between 9825-9853 which will be interesting to watch 9868 is the value area high and if we take that out, then we can target Friday’s high. To the downside, the naked vpoc from Friday is 9778, 9743 is the value area low and if we take that out we can target Friday’s low of 9700.
Dax Technical Analysis Video