dax daily outlook for thurs 30 apr coming close to 11190 key support for a potential rebound 5455820
<p>(Click to enlarge charts) What happened yesterday The German 30 Index (proxy for the DAX) has broken below the 11730 daily pivotal support and plummeted […]</p>
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What happened yesterday
The German 30 Index (proxy for the DAX) has broken below the 11730 daily pivotal support and plummeted beyond the alternate target at 11600.
Yesterday’s price action has invalidated the preferred “last push up” scenario. Please click on this link to review our previous daily outlook.
Key elements
- Current price action has tumbled and it is coming close to a long-term trendline support joining the lows since 16 October 2014 low (in blue) and 100-day Moving Average (in light green) at 11190 (see daily chart).
- The 11190 support also confluences closely with a Fibonacci cluster (38.2% Fibonacci retracement from 16 December 2014 low to 13 April 2015 high + 1.00 Fibonacci projection from 13 April 2015 high to 27 April 2015 low) (see daily & hourly charts).
- The intermediate term RSI oscillator is also coming close to its trendline support and oversold region which suggests limited downside potential (see daily chart).
- The hourly Stochastic oscillator is now attempting to exit from its oversold region (see hourly chart).
Key levels
Intermediate support: 11280
Pivot (key support): 11190
Resistance: 11635/11700
Next support: 10600
Conclusion
The Index is now coming close to our weekly downside target at 11190 (please click on this link for more details on our latest weekly outlook).
Current technical elements suggest that as long as the 11190 daily pivotal support holds, the Index is likely to shape a potential rebound to target the short-term pull-back resistance zone of 11635/11700.
However, a crack below 11190 may see another potential waterfall slide towards the next support at 10600 (see daily chart).
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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