Technical Analysis 28/04/2015

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Good morning Traders!

Plenty of German press reports today suggested that Greece has amended its reforms list and is expected to present it at the Eurozone meeting on Wednesday. It was also reported that Tsipras has made changes to his team with Varoufakis losing a close ally, suggesting a clearly positive move for Eurozone negotiations, pleasing the Germans, and the Dax. All very positive news which perhaps contributed to the surge this morning.

And there we have it, as swiftly as it arrived, the correction ends and up we go again. Bears would have taken some pleasure in seeing the quick slump to 116xx but it was always going to be difficult [near impossible] to break significantly through the thick web of support. So we have ended up with a dip, and like many many others, I like buying dips in bullish markets.

For the rest of the week, there are a couple of key resistance levels to take out to continue the journey, but congratulations to all those who cut their short positions and jumped back on the long bus.

For anyone interested in following my trades, look at the bottom of the article.

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Dax Support & Resistance

KEY LEVELS		Difference
Daily R2	12248	271
Daily R1	12119	226
Value High	11926	111
Daily Pivot	11924	125
24hr VWAP	11911	74
34 Hour EMA	11898	56
Daily S1	11795	80
Naked VPOC	11780	11
Value Low	11742	-7
Daily S2	11600	-21
200 Day EMA	10599	15

Dax Charts

I noticed earlier that the 4 hour chart had pierced the channel to the topside suggesting a slow down/pullback before moving further higher. The 30 minute chart shows the channel pointing up but still has room below however the 5 minute chart is looking flat and compressing suggesting a breakout. I would be buying again from 11900.

1Dax – FXI Indicator

Strong bullish candle closed just short of last weeks high on the daily chart. We are holding the 11574 extension which is key. Now I will watch for a break above last week’s high and 11180.