Short-term technical outlook on Germany 30 Index (Tues, 24 Apr)
Key technical elements
- Last week, the Germany 30 Index (proxy for the DAX futures) had staged a bullish breakout from its neckline resistance of a minor bullish “Double Bottom” reversal chart configuration in place since 06 Feb 2018 low (see daily chart).
- The former neckline resistance of the aforementioned “Double Bottom” bullish breakout is now a pull-back support at 12500/460 which also confluences with the minor ascending channel support from 06 Apr 2018 low (see 1 hour chart).
- Yesterday, 20 Apr, the Index has staged a bullish breakout from a minor “Flag” consolidation configuration that took place after the breakout of the “Double Bottom” from last Wed, 18 Apr high of 12640 now turns pull-back support at 12560.
- The next significant short-term resistance stands at 12750/865 (former range support from 15 Nov 2017/02 Jan 2018, 61.8% Fibonacci retracement of the decline from its current all-time high printed on 23 Jan 2018 to 06 Feb 2018 low & the upper boundary of the aforementioned minor ascending channel as depicted in the hourly chart).
Key Levels (1 to 3 days)
Intermediate support: 12560
Pivot (key support): 12500/460
Resistances: 12640 & 12750/865
Next support: 12375
Therefore as long as the 13470 short-term pivotal support holds, the Index is likely to resume its potential upleg to retest the 18 Apr minor swing high of 12640 before targeting the 12750/860 resistance zone.
On the flipside, failure to hold at 12460 puts the bulls on hold for a deeper pull-back towards the next intermediate support at 12375 (minor swing low area of 16 Apr 2018).
Charts are from City Index Advantage TraderPro
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.