dax daily outlook tues 08 dec potential push up above 10790 support 1789802015
<p>(Click to enlarge chart) What happened earlier The Germany 30 Index (proxy for the DAX) has traded sideways after a push up (+3.4%) seen in […]</p>
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What happened earlier
The Germany 30 Index (proxy for the DAX) has traded sideways after a push up (+3.4%) seen in price action from last Friday, 04 December 2015 low of 10630.
Key elements
- In the shorter-term as seen from last Friday, 04 December 2015 low, the Index has started to evolve within a short-term ascending channel (in orange) with lower boundary (support) at around 10790 and its upper boundary (resistance) now at 11060.
- The 10790 short-term support also confluences with the 50% Fibonacci retracement of the recent recovery from last Friday, 04 December 2015 low of 10630 to yesterday’s high of 10994.
- The upper boundary of the ascending channel also coincides with the former trendline support linking the higher lows since 29 September 2015 now turns pull-back resistance (in dotted blue) at 11060. Do note that the 11060 resistance is the medium-term neutrality level as per highlighted in our latest weekly outlook/strategy (click here for details)
Key levels (1 to 3 days)
Pivot (key support): 10790
Resistance: 11060
Next support: 10520
Conclusion
On the short-term, as long as the 10790 daily pivotal support holds, the Index may shape a push up to test the 11060 resistance (medium-term upper neutrality level).
On the other hand, a break below the 10790 short-term pivotal support is likely to see a further decline to target the pull-back support area of the “Double Bottom” bullish breakout at 10520.
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