DAX Intraday Trading Opportunity: Technical AnalysisSetup
🔍 Buy Stop Order: DAX
Entry: 22623.88
Stop Loss: 22507.25
Target 1 (1:2 R/R): 22856.14
Target 2 (1:3 R/R): 22972.23
Technical Analysis
The DAX is maintaining its internal bullish structure and trading above yesterday's Value Area High (VAH) at 22574.15, setting up for a potentially strong breakout. We're looking for price to break out of the current Asia session range and push toward the previous week's Point of Control (POC) at 22868.52.
Current price action shows strong buying pressure with multiple technical confirmations:
Price consolidating above key support levels
Positive momentum on oscillators (45.41 RSI)
Trading above all major moving averages on the intraday timeframe
This should present a clean 1:2 risk-reward trade to our first target. If buyers maintain control, we could see price push past the previous week's Value Area High (22921.25) and potentially form new all-time highs beyond 23000.
Market Context
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The DAX constituent heatmap confirms that components within the index are performing relatively positive today, supporting our bullish thesis. Key sectors showing strength include technology and industrials.
Risk Assessment
The market is the market - if we fail to get a clean breakout of the current range (22550-22650), expect another move lower to collect sell-side liquidity resting at the previous week's Value Area Low (~22340). This would potentially create a mid-week reversal pattern (typical on Wednesdays) to take out the previous week's low.
Trade Management
Partial profit taking at 1:2 R/R (~22856)
Trail stops to breakeven after first target hit
Let remainder run for 1:3 R/R to 22972.23
Watch volume profile for signs of exhaustion at resistance levels
Key Levels to Watch
Support: 22507.25 (Stop level), 22531.39 (Recent low)
Resistance: 22868.52 (Weekly POC), 22921.25 (Weekly VAH)
Ultimate target: 22972.23 (Weekly high)
Trade responsibly and adjust your position size according to your risk tolerance.
