Short-term technical outlook on Germany 30 Index (Thurs, 11 Jan)
Key technical elements
- The 1.5% decline from its recent 09 Jan 2018 high has managed to stall at a significant short-term support of 13240 which is defined by the former minor descending trendline from it current all-time high printed on 07 Nov 2017 (see 4 hour chart).
- In addition, the 4 hour Stochastic oscillator has just exited from its oversold region which suggests that the recent 4 days of downside momentum seen in price action has started to abate.
- The intermediate resistance stands at 13350 which is defined by the former minor swing lows area of 08/09 Jan 2018 and the minor descending trendline from 09 Jan 2018 (see 1 hour chart).
- The significant short-term resistance stands at 13530/560 which is the current all-time high area of 07 Nov 2017 and a Fibonacci projection cluster.
Key Levels (1 to 3 days)
Pivot (key support): 13240
Resistances: 13350, 13415 & 13530/560
Next support: 13000 (medium-term pivot)
Therefore as long as the 13240 key short-term pivotal support holds and a break above 13350 may see the start of another potential impulsive upleg to retest 13415 before targeting the 13530/560 resistance in the first step.
However, failure to hold above 13240 should negate the bullish tone to see a deeper corrective pull-back towards the 13000 medium-term pivotal support (61.8% Fibonacci retracement of the recent rally from 02 Jan to 09 Jan 2018 high & the former minor swing low areas of 14/21 Dec 2017).
Charts are from City Index Advantage TraderPro
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