The DAX has edged back up in trading this morning, finally back through the 12000 level. From a fundamental perspective – German Chancellor Angela Merkel said that there have been assurances from Athens late last night, that it will submit reforms needed to unlock bailout cash. Greek authorities will have the ownership of the reforms and will present a full list of specific reforms in the next few days. In Athens on Friday, government spokesman Gabriel Sakellaridis said:
“Once the reforms are submitted, and in a detailed manner, to the Euro Group when that happens … then the funding will be unlocked towards the Greek economy.”
From a technical perspective – the DAX has reclaimed it’s Hourly 100 moving average (blue line in the chart below) which was necessary for bulls to re-enter the market (as mentioned in yesterday’s article http://theshielreport.com/dax-intraday-levels-19th-march/ ). Looking at the chart below, one can see that price ping ponged between the Hourly 100 MA and Hourly 200 MA (green line) over the last two days. Price failed, yet again, to close below the Hourly 200 MA at 11810 in trading yesterday. The 17775/11750 zone below also acted as a good barrier of support for the bulls. As a result, price has again resumed its uptrend, eventually taking out and reclaiming it’s Hourly 100 MA in trading this morning.
(click to enlarge)
CONCLUSION – BULLISH
For bulls, price needs to hold against the Hourly 100 MA on a potential retest in this afternoon’s trading session. Any pullbacks in today’s price I would see as a buying opportunity at 12000, 100&200 MA on 5 minute timeframe (see chart below) and the Hourly 100 MA. All of these areas are easy levels for buyers to define risk against.
For bears, price still needs to break down and close through the Hourly 200 MA.
Bearish targets :-
- 11881 (Today’s low)
- Hourly 200 MA (currently at 11856)
- 11784 (yesterday’s low & also Daily S1 Pivot)
Bullish targets :-
- 12110 (Daily R2 Pivot)
- 12200
- 12222 (all time high + near Daily R3 Pivot 11218)