Short-term technical outlook on Germany 30 Index (Wed, 24 Jan)
Key technical elements
- Since its 17 Jan 2018 minor swing low, the Germany 30 Index (proxy for the DAX futures) has been evolving in a minor ascending channel (depicted in orange) within medium-term ascending channel (depicted in dark blue) in place since 02 Jan 2018 low.
- Current price has started to consolidate above the lower boundary of the minor ascending channel now acting as a support at 13470.
- The next significant short-term resistances stand 13670 (the upper boundary of minor ascending channel from 17 Jan 2018 & the 3.618 Fibonacci projection of the up move from 17 Jan 2018 low) follow by 13760/820 (Fibonacci projection cluster).
- The hourly Stochastic oscillator has started to turn up right above its oversold region which suggests a revival of short-term upside momentum of price action.
Key Levels (1 to 3 days)
Intermediate support: 13530
Pivot (key support): 13470
Resistances: 13670 & 13760/820
Next support: 13400/340
Therefore as long as the 13470 short-term pivotal support holds, the Index is likely to resume its potential impulsive upleg to target the next resistance at 13670 and above it opens scope for a test on the 13760/820 zone.
On the other hand, a break below 13470 may negate the bullish tone to trigger a deeper corrective pull-back towards the next support at 13400/340 (the former swing high area of 08/09 Jan 2018 & medium-term ascending channel support from 02 Jan 2018 low).
Chart is 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.