dax daily outlook for tues 23 june potential short term decline below 11620 resistance 742532015
<p>(Click to enlarge charts) What happened earlier The German 30 Index (proxy for the DAX) has continued to rally strongly but it is still below […]</p>
Share this:
What happened earlier
The German 30 Index (proxy for the DAX) has continued to rally strongly but it is still below the 11620 medium term resistance as per highlighted in our latest weekly outlook.
Key elements
- The 11620 significant resistance 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 close to 1.00 Fibonacci projection from 18 June 2015 low to 19 June 2015 low (on the smaller time scale) (see daily & 4 hour charts).
- The pull-back support of the former short-term trendline resistance (in dotted green) and the current short-term trendline support joining the lows since 18 June 2015 (in green) stands at 11300/11200.
- The intermediate term RSI oscillator is still below its resistance despite a bullish divergence signal (see daily chart).
- The hourly Stochastic oscillator has reached its extreme overbought level.
Key levels
Pivot (key resistance): 11620
Support: 11300/11200
Next resistance: 12050/12150
Conclusion
Technical elements are advocating for a potential short-term decline below the 11620 resistance to target at least the 11300/11200 support.
However, a clearance 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
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 email, 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, a trading name of GAIN Capital Singapore Pte Ltd.
Trading CFDs and FX on margin 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 cityindex.com.sg for the complete Risk Disclosure Statement.
Related tags:
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.