Chart of the day DAX uptrend remains intact
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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
Conclusion
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
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