DAX 1 hour time frame ! Ascending Channel has been developed
DAX Index – 1H Chart Analysis (Feb 20, 2025)
1. Trend & Market Structure
The DAX is trading inside a strong ascending channel, indicating a well-defined bullish trend.
The price recently tested the lower boundary of the channel, which has acted as dynamic support throughout the rally.
There is a bullish reaction forming at this trendline support, suggesting potential continuation to the upside.
2. Key Levels to Watch
Support:
22,250 - 22,500 → Trendline support & potential bounce zone.
21,750 - 22,000 → Strong demand area if breakdown occurs.
Resistance:
22,750 - 23,000 → Upper boundary of the channel, first profit target.
23,200+ → Possible breakout if momentum strengthens.
3. RSI & Momentum Analysis
The RSI is at 42, indicating slight bearish momentum but still above the oversold zone.
Historically, RSI bounces from similar levels within this channel, making this a potential buying opportunity if bullish confirmation follows.
A cross above 50 on RSI would confirm renewed bullish strength.
4. Potential Trade Scenarios
📈 Bullish Scenario (Bounce from Support)
If the price holds the 22,500 trendline, a move toward 22,750 - 23,000 is expected.
A breakout above 23,000 could lead to a rally towards new highs.
📉 Bearish Scenario (Break Below the Channel)
A breakdown below 22,250 would weaken the bullish structure and open the door for a move toward 21,750 - 22,000.
A sustained move below 21,750 would confirm a trend reversal.
5. Conclusion & Trade Plan
Bullish Bias: As long as the price stays inside the channel, dips are buying opportunities.
Entry Zone: 22,500 - 22,600 (If support holds).
Target: 22,750 - 23,000 (Take profit inside the channel).
Stop-Loss: Below 22,250 (Invalidation of trend).
1. Trend & Market Structure
The DAX is trading inside a strong ascending channel, indicating a well-defined bullish trend.
The price recently tested the lower boundary of the channel, which has acted as dynamic support throughout the rally.
There is a bullish reaction forming at this trendline support, suggesting potential continuation to the upside.
2. Key Levels to Watch
Support:
22,250 - 22,500 → Trendline support & potential bounce zone.
21,750 - 22,000 → Strong demand area if breakdown occurs.
Resistance:
22,750 - 23,000 → Upper boundary of the channel, first profit target.
23,200+ → Possible breakout if momentum strengthens.
3. RSI & Momentum Analysis
The RSI is at 42, indicating slight bearish momentum but still above the oversold zone.
Historically, RSI bounces from similar levels within this channel, making this a potential buying opportunity if bullish confirmation follows.
A cross above 50 on RSI would confirm renewed bullish strength.
4. Potential Trade Scenarios
📈 Bullish Scenario (Bounce from Support)
If the price holds the 22,500 trendline, a move toward 22,750 - 23,000 is expected.
A breakout above 23,000 could lead to a rally towards new highs.
📉 Bearish Scenario (Break Below the Channel)
A breakdown below 22,250 would weaken the bullish structure and open the door for a move toward 21,750 - 22,000.
A sustained move below 21,750 would confirm a trend reversal.
5. Conclusion & Trade Plan
Bullish Bias: As long as the price stays inside the channel, dips are buying opportunities.
Entry Zone: 22,500 - 22,600 (If support holds).
Target: 22,750 - 23,000 (Take profit inside the channel).
Stop-Loss: Below 22,250 (Invalidation of trend).
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.