dax daily outlook wed 18 nov cautious as we are approaching the 1105011100 key intermediate resistan
<p>(Click to enlarge charts) What happened yesterday The Germany 30 Index (proxy for the DAX) has staged a bullish breakout from its former short-term trendline […]</p>
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What happened yesterday
The Germany 30 Index (proxy for the DAX) has staged a bullish breakout from its former short-term trendline resistance linking the lower highs since 09 November 2015 and printed a high of 10977. Thereafter, it traded sideways throughout the U.S. session.
Please click on this link for a recap on our previous updated daily outlook/strategy.
Key elements
- The Index has a bullish breakout from its former short-term trendline resistance linking the lower highs since 09 November 2015 now turns pull-back support (in dotted pink) at 10830.
- The aforementioned 10830 pull-back support also confluences with a Fibonacci retracement cluster.
- The key intermediate resistance to watch will be at 11050/11100 which is defined by the trendline resistance linking the lower highs since 13 April 2015 and a 1.1618 Fibonacci projection of a lower degree up move from 16 November 2015 low @3pm to 16 November 2015 high @7pm projected from the 16 November 2015 low @10pm (see daily & 4 hour charts).
Key levels (1 to 3 days)
Pivot (key support): 10830
Resistance: 11050/11100
Next support: 10680 & 10600
Conclusion
The short-term bullish trend in place since this Monday, 16 November 2015 low remains intact but do be cautious as the Index is now coming close to a key near-term resistance at 11050/11100. We have adjusted the daily (short-term) pivotal support to 10830 for a potential push up to target the 11050/11100 zone.
However, a crack below the 10830 pivotal support is likely to unleash a short-term decline towards the next support at 10680 and even 10600 (the trendline support linking the higher lows since 29 September) before the expected medium-term up side movement resumes.
Disclaimer
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