Short-term technical outlook on DAX/Germany 30 (Tues 19 Mar)
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Key technical elements
- The on-going rebound of the Germany 30 Index (proxy for the DAX futures) from its 26 Dec 2018 low of 10180 has continues to evolve above an ascending trendline that is acting as a support at 11400 that also coincides with the recent swing low of 08 Mar 2019.
- Recent price action of the Index has staged a bullish breakout from its minor descending trendline resistance from 04 Mar 2019 swing high now acting as a key short-term support at 11600.
- The key short-term support of 11600 also confluences with the lower boundary of the minor ascending channel in place since 08 Mar 2019 low.
- The next significant near-term resistance stands at the 11770/800 zone which is defined by the upper boundary of minor ascending channel, 0.618 Fibonacci expansion of the recent push up from 08 Mar 2019 low to 15 Mar 2019 minor swing high projected from 15 Mar 2019 minor slow and the resistance of the former major “Head & Shoulders” neckline support. Click here for details as per highlighted in our latest weekly report.
Key Levels (1 to 3 days)
Pivot (key support): 11600
Resistances: 11710, 11770/11800 (medium-term pivotal resistance).
Next support: 11470 & 11400 (medium-term downside trigger)
Overall, short-term technical elements suggest the upside momentum remains intact for the Germany 30 Index. If the 11600 key short-term pivotal support holds, the Index is likely to shape another potential push up to retest yesterday, 18 Mar swing high area of 11710 before targeting the next resistance at 11770/11800.
However, failure to hold at 11600 opens up scope for a deeper pull-back towards the next support at 11470 and even a possible test on the 11400 medium-term downside trigger level (the ascending trendline from 26 Dec 2018 low).
Charts are from City Index Advantage TraderPro
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