dax daily outlook for wed 12 aug 1103011000 will be the key support to watch now 1014402015

(Click to enlarge charts) Key elements The German 30 Index (proxy for the DAX) has broken below the lower boundary (support) of the former ascending […]

(Click to enlarge charts)

Key elements

The German 30 Index (proxy for the DAX) has broken below the lower boundary (support) of the former ascending channel (in dotted brown) joining the lows since 8 July 2015 at 11280 now turns pull-back resistance at 11400 (see daily chart).
Current price action is now testing the pull-back support of the former descending channel bullish breakout at 11000 (see daily chart).
The hourly Stochastic oscillator has just exited from it oversold region (see 1 hour chart).
The intermediate resistance stands at 11200 which also corresponds with the 23.6% Fibonacci retracement of the current steep down move from 06 August 2015 high @4pm (see 1 hour chart).

Key levels

Pivot (key support): 11030/11000

Resistance: 11200 & 11400

Next support: 10600

Conclusion

The key support to watch now will be at 11030/11000 and any potential rebound should be capped by the intermediate resistance at 11200. The Index needs to break above 11200 in order to see a significant recovery towards 11400 in the first step.

However, failure to hold above the 11030/11000 support is likely to see the continuation of the waterfall slide to target the long-term support at 10600.

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