dax daily outlook for fri 23 jan potential final push up towards 1062510740 before risk of setback 9

What happened yesterday The German 30 Index (proxy for the DAX) has continued to rally and almost met our target at 10550/10580 as expected. Please […]

What happened yesterday

The German 30 Index (proxy for the DAX) has continued to rally and almost met our target at 10550/10580 as expected. Please click on this link for more details on our previous day’s outlook

Key elements

The Index has accelerated and now evolves within a short-term term ascending channel (in orange) in place since 15 January 2015. The upper limit of this ascending channel stands at 10625/10740.
The 10625/10740 resistance also coincides with a Fibonacci projection cluster.
The 34-period Moving Average is coming to support the Index at 10385 which also confluences with the 50% Fibonacci retracement from 22 January 2015 low to its current high.
The Stochastic oscillator has dipped into the oversold region.

Key levels

Pivot (key support): 10385

Resistance: 10550/10580 & 10625/10740

Next support: 10250

Conclusion

The short-term bullish trend in place since 15 January 2015 low remains intact for the German 30 Index (proxy for the DAX). As long as the daily pivotal support at 10385 holds, the Index is likely to stage a potential push up towards 10550/10580 before 10625/10740.

*A point of caution is that we are likely in the final stage of this short-term bullish trend based on the fractal approach (Elliot Wave) and we may start to see a setback (wave 4) below 10625/10740.

On the other hand, failure to hold above 10385 may invalidate the “push up scenario” to see a slide towards the next support at 10250 (also the lower limit of the short-term ascending channel).

Disclaimer

The information contained in this material 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 report, 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 Asia Pte Ltd.

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