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

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By :  ,  Financial Analyst

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)


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


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Related tags: Indices Germany 40

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