Happy new year traders! Welcome to the DAX TECHNICAL ANALYSIS 5TH JANUARY 2015. I trust you are all well rested and have enjoyed the festivities, let’s bring on the trading and start the new with a good January.
DAX TECHNICAL ANALYSIS 5TH JANUARY 2015 Support and Resistance
| Daily R2 | 9962 |
| Daily R1 | 9864 |
| 34 Hour EMA | 9802 |
| Value High | 9782 |
| Daily Pivot | 9774 |
| 24hr VWAP | 9763 |
| Naked VPOC | 9750 |
| Value Low | 9704 |
| Daily S1 | 9676 |
| Daily S2 | 9586 |
| 200 Day EMA | 9465 |
DAX TECHNICAL ANALYSIS 5TH JANUARY 2015
On the DAX daily chart we are above the 200 daily EMA and have been in an up trend since October. I have plotted the tram lines on the daily chart to track the progress and will be watching them closely this month. The trend defining level is around the 9216 low from mid-december.
Intra-day we have been in a downtrend since 29/12 and are below the 34-hour EMA after having touched it twice recently but been rejected. I have received two separate sell signals from different moving average indicators to suggest a bearish bias and I took the signal to sell on 29/12.
On the volume profile there was a massive high volume area carved out from Friday, but I will ignore most of this data due to it being a Friday. Today will be more representative as lots more traders will be back at their desks.
Learn more about DAX technical analysis by learning from our educational technical analysis articles.
Dax Outlook
I am bearish and have an open trade with a stop loss now moved to breakeven.
EURUSD is interesting as there was a huge gap lower on the currency last night and we know the correlation between the Euro and the Dax. There are also similarities between the Dax and USDJPY also saw some downside movement on open.
If the Dax falls today then the naked vpoc will be a key area to take out which opens up the 9680’s after passing the value area low at 9704. Price did surge late on Friday to approximately 50% of the Friday afternoon (GMT) swing which could mean current levels are a good entry for a short position, but a gap will likely make that impossible.
If the Dax surges higher today then 9832 needs to be taken out and held before the Friday high can be challenged which is around the R1 level, this gap could clear quite quickly as there is a low volume pocket from the 29th there, just be aware that the general trading volume was a lot lower on the 29th, meaning this low volume pocket might not hold much weight.
The first proper trading day of the new year promises to bring trading volume, but not necessarily any particular bias. Indecision may dominate today, so be light on your feet if you’re trading short-term.
Remember to watch Oil!
Good luck trading
