dax daily outlook for fri 06 mar 11450 needs to be broken to trigger a potential decline 284052015
<p>(Click to enlarge charts) What happened yesterday The German 30 Index (proxy for the DAX) has pushed up as expected and challenged the 11505 daily/weekly […]</p>
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What happened yesterday
The German 30 Index (proxy for the DAX) has pushed up as expected and challenged the 11505 daily/weekly pivotal support. However, it failed to have a daily close above the 11505 level.
Please click on this link for more details our previous daily outlook.
Key elements
- Price action is now at the upper boundary of the ascending channel (in dark blue) in place since 16 December 2014 at 11505 (see 4 hour chart).
- 11505 is also a Fibonacci projection cluster.
- The Stochastic oscillator has just exited from its overbought region (see 4 hour chart).
- The trendline support (in orange) joining the lows since 10 February 2015 stands at 11230 which is the weekly support (click this link for more details on our latest weekly outlook) (see 4 hour chart).
- The hourly Stochastic oscillator has flashed a bearish divergence signal (see 1 hour chart).
- The first short-term support to watch will be at 11450 (former resistance joining the highs of 02 and 03 March 2015) (see 1 hour chart).
Key levels
Pivot (key resistance): 11505/11532
Support: 11450, 11315 & 11230
Next resistance: 11620
Conclusion
Short-term technical elements remain toppish below 11505/11532 (excess) but the Index needs to break below 11450 in order to trigger a potential decline towards 11315 with a maximum limit set at the 11230 weekly support.
However, a clear break above 11505/11532 is likely to see the continuation of the bullish trend to target the next resistance at 11620 in the first instance.
Disclaimer
The information contained in this material is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index Asia Pte Ltd.
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