dax daily outlook friday 20 nov 10970 key short term support to maintain bullish momentum 2631282015

(Click to enlarge charts)

What happened yesterday

The Germany 30 Index (proxy for the DAX) has pushed up and surpassed the 11100 acceleration level before staging a pull-back in the U.S. session.

Please click on this link for a recap on our previous daily outlook/strategy.

Key elements

• Current price action is now resting at the 11050 pull-back support (in dotted green) of the former trendline resistance linking the lower highs since 13 April 2015.
• The key short-term pivotal support remains at 10970 which is defined by the former minor swing highs of 11 November 2015 @8pm and 18 November 2015 @1am now turns pull-back support and the 23.6% Fibonacci retracement of the recent up move from 16 November 2015 low to yesterday’s high of 11153.
• The hourly (short-term) Stochastic oscillator has exited from the oversold region which suggests a revival of upside momentum.
• The key short-term resistance remains at 11220 which confluences with a lower degree 76.4 Fibonacci projection of the up move from 16 November 2015 low to 18 November 2015 high @12am projected from 18 November 2015 low @5pm. In addition, the 11220 resistance is our weekly expected upside target (click here for more details as per highlighted in our latest weekly outlook/strategy).

Key levels (1 to 3 days)

Pivot (key support): 10970

Resistance: 11220

Next support: 10830

Conclusion

As long as the daily (short-term) pivotal support at 10970 holds, we maintain our bullish stance for a potential upside movement to target the 11220 resistance.

However, a break below the 10970 pivotal support is likely to see a deeper pull-back towards the next support at 10830 which is also the former short-term trendline resistance now turns support (in dotted pink).

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