dax daily outlook for thurs 06 aug bullish tone remains intact above 1153011480 support 970112015

(Click to enlarge chart) What happened yesterday The German 30 Index (proxy for the DAX) has managed to push higher above 11545; therefore the initial […]

(Click to enlarge chart)

What happened yesterday

The German 30 Index (proxy for the DAX) has managed to push higher above 11545; therefore the initial expected countertrend decline has been invalidated.

Please click on this link to review our previous updated daily outlook.

Key elements

The Index has managed to stage a bullish breakout (as depicted by the yellow box) above upper boundary of the former ascending channel. This price action represents an acceleration of the on-going bullish trend in place since 28 July 2015 low.
Based on the Elliot Wave Principal, the Index is likely to be in the midst of an extended bullish impulsive wave iii with a potential target at 11890 (2.618 Fibonacci projection from the 28 July 2015 low @1am to 30 July 2015 low @9pm.
The hourly Stochastic oscillator has just exited from the oversold region.
The upper (resistance) and lower (support) boundaries of the steeper ascending channel (in dark blue) stands at 11790 and 11530 respectively.

Key levels

Intermediate support: 11530

Pivot (key support): 11480

Resistance: 11790 & 11890

Next support: 11300

Conclusion

As long as the key 11530/11480 support holds, the Index is likely to stage another round of potential rally to target 11790 with a maximum limit set at the 11890 resistance.

On the other hand, a break below the 11480 daily pivotal support is likely to negate the bullish tone to see a slide to test the next support at 11300.

Disclaimer

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