dax daily outlook for tues 01 jul 10955 will be the potential downside trigger level 780442015
<p> (Click to enlarge charts) What happened yesterday The German 30 Index (proxy for the DAX) has traded sideways below the 11105/11290 resistance zone. Please […]</p>
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(Click to enlarge charts)
What happened yesterday
The German 30 Index (proxy for the DAX) has traded sideways below the 11105/11290 resistance zone.
Please click on this link for a recap on our previous daily outlook.
Key elements
- Yesterday, minor push up in price action has stalled at the 11138 level which is the 61.8% Fibonacci retracement of the recent steep down move from 29 June 2015 high @9pm to 30 June 2015 @4pm (see 1 hour chart).
- Price action is now being supported by a short-term ascending trendline joining the lows since 29 June 2015 @2pm now at 10955 (see 1 hour chart).
- Based on the Elliot Wave Principal, the typical 5th wave Fibonacci projection targets of 0.618, 0.764 and 1.00 from 23 June 2015 high @10pm to 29 June 2015 high @9pm coincides closely with the graphical supports of 10815/10800 and 10600 (see 1 hour chart).
- The hourly Stochastic oscillator is now coming close to its extreme overbought level.
Key levels
Intermediate resistance: 11138
Pivot (key resistance): 11290
Support: 10955, 10800 & 10600
Next resistance: 11380 (weekly pivot) & 11620
Conclusion
11138/11290 remains the significant resistance zone to watch in the short-term and the Index needs to break below the 10955 intermediate trendline support to gain impetus to resume the potential final leg of its medium term downside movement towards 10800 before targeting the 10600 significant support.
However, failure to hold below the 11290 resistance is likely to negate the bearish tone for a test on the 11380 weekly pivotal resistance. Only a clear break above 11380 may see a further push up to target the next resistance at 11620.
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