Short-term technical outlook on DAX/Germany 30 Index (Thurs 28 Mar)
click to enlarge charts
Key technical elements
- The recent rebound of 2% seen on the Germany 30 Index (proxy for the DAX futures) from its Mon, 25 Mar low of 11270 has reached a significant short-term resistance at 11500 which is defined by the former minor swing low area of 21 Mar 2018 and a Fibonacci retracement/expansion cluster (38.2% retracement of the recent slide from 19 Mar 2019 high to 25 Mar 2018 low & 1.236 expansion of the push up from 25 Mar low to 26 Mar high projected from 26 Mar 2019 minor low).
- Since its 25 Mar 2019 low of 11270, the price action of Index has evolved into a minor “bearish flag” range configuration with its support at 11380.
- The 4-hour Stochastic oscillator has started inch down from its overbought region coupled with the 1- hour RSI oscillator that remains bearish below its resistance at the 50 level. These observations suggest a revival of short-term downside momentum of price action.
Key Levels (1 to 3 days)
Pivot (key resistance): 11500
Supports: 11380 & 11260
Next resistance: 11650 (key medium-term pivot)
If the 11500 key short-term pivotal resistance is not surpassed and a break below 11380 is likely to reinforce the start of another potential impulsive downleg to target the next near-term support at 11260 in the first step.
However, a clearance above 11500 negates the bearish tone for an extension of the rebound to test the 11650 key medium-term pivotal as per highlighted in weekly technical outlook report published earlier on Mon (click here for a recap).
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.