dax daily outlook for fri 26 june bearish tone remains intact below 1153511620 resistance 756062015
<p>(Click to enlarge charts) What happened yesterday The German 30 Index (proxy for the DAX) has pushed up higher and retreated off the 11515 intermediate […]</p>
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What happened yesterday
The German 30 Index (proxy for the DAX) has pushed up higher and retreated off the 11515 intermediate resistance as expected.
Please click on this link for a recap on our previous daily outlook.
Key elements
- Yesterday’s price action has formed another daily bearish candlestick pattern called ‘Shooting Star” right below the 11620 significant resistance which is derived from the trendline resistance joining the highs since 13 April 2015, 50% Fibonacci retracement of the down move from 13 April 2015 high to 16 June 2015 low and 1.236 Fibonacci projection (see daily & 1 hour charts).
- Price action has staged a retreat off the pull-back resistance of the former short-term trendline support (in dotted red) at 11535 (see 1 hour chart).
- The hourly RSI oscillator remains bearish below its trendline resistance (see 1 hour chart).
- The next short-term support is at 11300/11200 which is close to the pull-back support of the former short-term trendline resistance (in dotted green) and the 50% Fibonacci retracement of the recent up move from 18 June 2015 low to 23 June 2015 high (see 1 hour chart).
Key levels
Intermediate resistance: 11535
Pivot (key resistance): 11620
Support: 11300/11200
Next resistance: 12050/12150
Conclusion
The short-term bearish bias remains intact for the Index below the 11535/11620 resistance zone for a potential push down to target 11300/11200 next.
On the other hand, a clear break above 11620 is likely to invalidate any medium term bearish/consolidation phase to see the continuation of the long-term bullish trend to target 12050/12150 in the first instance.
Disclaimer
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