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).