Featured Trade DAX pushed up towards key short term resistance
DAX may see a minor bearish reversal below 12140 key short-term resistance
Share this:
Short-term technical outlook on Germany 30 (Thurs, 13 Aug)
Key technical elements
- The on-going up move of 2% from 11 Sep 2018 low of 11862 is now hovering right below a key short-term resistance of 12140 which is defined by the former swing low areas of 27 Jun/15 Aug 2018 and a Fibonacci retracement/projection cluster (38.2% retracement of the recent decline from 28 Aug to 11 Sep 2018 low & 1.00 projection from 11 Sep 2018 low) (refer to 4 hour & 1 hour charts).
- The hourly Stochastic oscillator has reached an extreme overbought level of 97 coupled with the 4 hour Stochastic oscillator that is hovering at the overbought region as well. These observations suggest that the short-term upside momentum of price action is overstretched where the Index now faces a risk of a short-term decline at this juncture.
- The short-term support rests at 11900 which is defined by the minor swing lows of 07/11 Sep 2018.
Key Levels (1 to 3 days)
Pivot (key resistance): 12140
Support: 11900
Next resistance: 12540 (medium-term pivot)
Conclusion
The recent push up in the Germany 30 Index (proxy for the DAX futures) has reached a key short-term inflection level of 12140 coupled with overbought conditions seen in the short-term (4/1-hour) Stochastic oscillators. Therefore, as long as the 12140 key short-term pivotal resistance is not surpassed, the Index may see a push down to retest the 11900 intermediate support in the first step.
However, a clearance above 12140 invalidates the bearish scenario for a further squeeze up to target the 12540 medium-term pivotal resistance (also the upper boundary of the descending channel from 14 Jun 2018).
Charts are from City Index Advantage TraderPro
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
RBA delivers 25bp hike, Bullock now the main event
The RBA delivered the expected 25bp hike, but Bullock’s press conference now looms as the bigger volatility risk for AUD/USD and the ASX 200.
S&P 500 forecast: Stocks extend drop as correction risks grow
US and global equity markets have extended Wednesday’s sell-off, with Wall Street opening lower after a weak handover from Asia and Europe. The deterioration in risk appetite has been spreading across global markets. The dollar was firmer, Treasury yields were holding onto yesterday’s gains, while gold, silver and bitcoin were all under pressure alongside equities and major currencies.
ASX 200 Rebound Stalls Despite Wall Street Surge
The ASX 200 rebound is struggling for traction despite a powerful Wall Street rally, leaving 8800 resistance and downside risks in focus.
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.