dax daily outlook for fri 15 aug testing the 11000 support but no clear bearish elements 1029182015

(Click to enlarge charts)

Key elements

• The German 30 Index (proxy for the DAX) is now back at the 11000 pull-back support of the former descending channel bullish breakout (see daily chart).
• The intermediate resistance stands at 11200 follow by the pull-back resistance of 1370/11400 which also corresponds closely with the 61.8% of the recent steep downside movement from 06 August 2015 high @4pm to the 12 August 2015 low@10pm (see daily & 1 hour charts).
• The hourly Stochastic oscillator has dipped back into its oversold region which highlights a potential upswing is round the corner for the Index (see 1 hour chart).
• Hourly candlestick has formed a “DojI” which suggests that the recent slide from the 11155 high on 13 August 2015 @7pm is losing down side momentum (see 1 hour chart).

Key levels

• Pivot (key support): 11000
• Resistance: 11200 & 11370/11400
• Next support: 10890 & 10600

Conclusion

Current price action is now testing the 11000 support but technical elements (hourly candlestick & Stochastic oscillator) do not warrant for a clear bearish breakdown.

However, the Index needs to clear above the 11200 resistance for the bulls to gain impetus for a further upside movement to target 11370/11400 next.

On the other hand, an hourly close below the 11000 support is likely to see a retest on yesterday’s low at 10890. Failure to hold above 10890 is likely to see the continuation of the waterfall slide to target the long-term support at 10600.

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