Chart of the day Bullish impulsive wave sequence likely resume for DAX

Short-term technical outlook on DAX (Wed, 01 Nov 2017)

Key technical elements

• The Germany 30 Index (proxy for the DAX futures) has staged a bullish breakout from its 13260 intermediate resistance (minor consolidation range in place since last Friday, 27 October. This observation suggests a bullish acceleration of its short-term uptrend in place since 26 October 2017 low.
• Short-term upside momentum remains positive as the 4 and 1 hour Stochastic oscillators continues to hover above their respective overbought zones without any bearish divergence signals.
• The Index is now evolving within a short-term ascending channel (depicted in light green) in place since 26 October 2017 low with its lower boundary acting as a support at 13230 and upper boundary coming in at 13410/435 which confluences with the lower limit of our medium-term resistance/target of 13435/560 (click here for more details as per highlighted in our latest weekly technical outlook).
• Key short-term support will be at 13230/200 which is defined by the lower boundary of the aforementioned short-term ascending channel, minor swing low areas of 27/30 October 2017 and 23.6% Fibonacci retracement of the on-going up move from 26 October 2017 low.

Key Levels (1 to 3 days)

Intermediate support: 13290

Pivot (key support): 13230/200

Resistances: 13410/435 & 13560

Next support: 13050 (medium-term pivot)

Conclusion

Therefore, the Index is likely to resume its bullish impulsive wave sequence after a minor sideways range configuration in place since last Friday, 27 October. As long as the 13230/200 key short-term pivotal support holds, a further potential push up towards the next resistance at 13410/435 in the first step.

However, failure to hold above 13230/200 shall negate the bullish tone for a minor corrective decline towards the 13050 medium-term pivotal support.

corrective choppy decline to retest the 6010 key medium-term pivotal support.

Charts are from City Index Advantage TraderPro

Disclaimer

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 email, 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. All queries regarding the contents of this material are to be directed to City Index, a trading name of GAIN Capital Singapore Pte Ltd.

Trading CFDs and FX on margin 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 cityindex.com.sg for the complete Risk Disclosure Statement.