dax daily outlook for friday 27 feb setback view invalidated now pull back before potential push up
<p>(Click to enlarge chart) What happened yesterday The German 30 Index (proxy for the DAX) has broken above the 11250/11300 daily pivotal resistance hence invalidated […]</p>
Share this:
What happened yesterday
The German 30 Index (proxy for the DAX) has broken above the 11250/11300 daily pivotal resistance hence invalidated the setback scenario. Please click on this link for more details on our previous daily outlook.
Key elements
- Price action continues to evolve within a short-term ascending channel (in dark blue) in place since 17 February 2015 without any clear bearish exhaustion signals.
- The lower boundary of the short-term ascending channel stands at 11220 which is also close to the 23.6% Fibonacci retracement from 17 February 2015 low to 26 February 2015 high.
- The upper boundary of the short-term ascending channel stands at 11455 which is also close to the 1.618 Fibonacci projection level.
- The hourly Stochastic oscillator has just turned down from the overbought region which suggests the risk of a pull-back.
Key levels
Pivot (key support): 11220
Resistance: 11455
Next support: 11000/10990
Conclusion
The Index may see a pull-back first with a maximum set at the 11220 daily pivotal support before another round of potential upside movement to target the 11455 long-term resistance.
On the other hand, failure to hold above 11220 is likely to damage the bullish trend to see a decline towards the next support at 11000/10990.
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.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
This report 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.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.