Chart of the day Bullish momentum follow through in DAX

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By :  ,  Financial Analyst

Short-term technical outlook on Germany 30 Index (Tues, 24 Apr)

Key technical elements

  • Last week, the Germany 30 Index (proxy for the DAX futures) had staged a bullish breakout from its neckline resistance of a minor bullish “Double Bottom” reversal chart configuration in place since 06 Feb 2018 low (see daily chart).
  • The former neckline resistance of the aforementioned “Double Bottom” bullish breakout is now a pull-back support at 12500/460 which also confluences with the minor ascending channel support from 06 Apr 2018 low (see 1 hour chart).
  • Yesterday, 20 Apr, the Index has staged a bullish breakout from a minor “Flag” consolidation configuration that took place after the breakout of the “Double Bottom” from last Wed, 18 Apr high of 12640 now turns pull-back support at 12560.
  • The next significant short-term resistance stands at 12750/865 (former range support from 15 Nov 2017/02 Jan 2018, 61.8% Fibonacci retracement of the decline from its current all-time high printed on 23 Jan 2018 to 06 Feb 2018 low & the upper boundary of the aforementioned minor ascending channel as depicted in the hourly chart).

Key Levels (1 to 3 days)

Intermediate support: 12560

Pivot (key support): 12500/460

Resistances: 12640 & 12750/865

Next support: 12375


Therefore as long as the 13470 short-term pivotal support holds, the Index is likely to resume its potential upleg to retest the 18 Apr minor swing high of 12640 before targeting the 12750/860 resistance zone.

On the flipside, failure to hold at 12460 puts the bulls on hold for a deeper pull-back towards the next intermediate support at 12375 (minor swing low area of 16 Apr 2018).

Charts are from City Index Advantage TraderPro


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