dax daily outlook for fri 08 may recovery remains intact watch the 11685 and 12050 resistances 58169
<p>(Click to enlarge charts) What happened yesterday The German 30 Index (proxy for the DAX) has dipped, tested but managed to stage a rebound above […]</p>
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What happened yesterday
The German 30 Index (proxy for the DAX) has dipped, tested but managed to stage a rebound above the 11190 weekly pivotal support.
Please click on this link for more details on our previous daily outlook.
Key elements
- Price action has formed a daily bullish “Hammer” candlestick pattern at the 11190 weekly pivotal support which is also the trendline support (in blue) joining the lows since 16 October 2014 (see daily chart). Note: prior to yesterday’s price action, it has formed a daily “Doji” candlestick pattern.
- Current price action is now attempting to break above 11460 potential upside trigger level (see 1 hour chart).
- The hourly Stochastic oscillator still has some room before reaching its “extreme” overbought level (see 1 hour chart).
Key levels
Pivot (key support): 11190
Resistance: 11685 & 12050
Next support: 10970
Conclusion
Recovery remains intact above 11190 pivotal support. Current technical elements suggest a potential push up towards the 11685 resistance (upper boundary of the short-term descending channel in place since 13 April 2015 high) in first step before targeting 12050 next.
On the other hand, failure to hold above 11190 is likely to damage the medium term bullish trend for a deeper slide towards the next support at 10970 in the first instance.
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