DAX Index – 1H Chart Analysis (February 20, 2025)
1. Market Structure & Trend Analysis
Ascending Channel: The price has been trending upwards within a well-defined ascending channel.
Support Retest: Price is currently testing the lower boundary of the channel, which has acted as dynamic support throughout the uptrend.
Potential Bounce: The blue arrow suggests an expected continuation to the upside if the support holds.
2. RSI & Momentum Analysis
RSI at 42.14: Indicates the market is approaching oversold conditions on the 1H timeframe, meaning a possible bounce is near.
Bullish Divergence? Not confirmed yet, but if RSI starts rising while price remains stable, it could indicate a reversal.
3. Key Levels to Watch
Support:
22,400 - 22,500 (Lower trendline of the channel)
22,250 (Stronger support if breakdown occurs)
Resistance:
22,750 - 23,000 (Upper trendline and psychological level)
4. Potential Trade Scenarios
📈 Bullish Scenario (Higher Probability)
If price holds above 22,500, we could see a continuation towards 22,750 - 23,000.
Long Setup:
Entry: 22,500 - 22,550 (confirmation of support hold)
Stop-loss: Below 22,400
Target: 22,750 - 23,000
📉 Bearish Scenario (Lower Probability)
If price breaks below 22,400, a decline toward 22,250 or lower could follow.
Short Setup:
Entry: Below 22,400
Stop-loss: Above 22,550
Target: 22,250 - 22,000
5. Conclusion & Strategy
Bias: Bullish as long as price stays within the ascending channel.
Trade Idea: A long trade from 22,500 with a stop below 22,400 offers a good risk-to-reward ratio.
Risk Management: If price starts consolidating near the lower boundary without bouncing, consider reducing risk or waiting for further confirmation.
1. Market Structure & Trend Analysis
Ascending Channel: The price has been trending upwards within a well-defined ascending channel.
Support Retest: Price is currently testing the lower boundary of the channel, which has acted as dynamic support throughout the uptrend.
Potential Bounce: The blue arrow suggests an expected continuation to the upside if the support holds.
2. RSI & Momentum Analysis
RSI at 42.14: Indicates the market is approaching oversold conditions on the 1H timeframe, meaning a possible bounce is near.
Bullish Divergence? Not confirmed yet, but if RSI starts rising while price remains stable, it could indicate a reversal.
3. Key Levels to Watch
Support:
22,400 - 22,500 (Lower trendline of the channel)
22,250 (Stronger support if breakdown occurs)
Resistance:
22,750 - 23,000 (Upper trendline and psychological level)
4. Potential Trade Scenarios
📈 Bullish Scenario (Higher Probability)
If price holds above 22,500, we could see a continuation towards 22,750 - 23,000.
Long Setup:
Entry: 22,500 - 22,550 (confirmation of support hold)
Stop-loss: Below 22,400
Target: 22,750 - 23,000
📉 Bearish Scenario (Lower Probability)
If price breaks below 22,400, a decline toward 22,250 or lower could follow.
Short Setup:
Entry: Below 22,400
Stop-loss: Above 22,550
Target: 22,250 - 22,000
5. Conclusion & Strategy
Bias: Bullish as long as price stays within the ascending channel.
Trade Idea: A long trade from 22,500 with a stop below 22,400 offers a good risk-to-reward ratio.
Risk Management: If price starts consolidating near the lower boundary without bouncing, consider reducing risk or waiting for further confirmation.
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.