dax daily outlook fri 15 jan 2016 potential upturn above 9680570 support 1793392016

(Click to enlarge charts)

What happened yesterday

The Germany 30 Index (proxy for the DAX) has dipped and retested the 9800/9750 key long-term support before it staged a rebound in the U.S. session.

Please click on this link for a recap on our previous short-term daily outlook/strategy.

Key elements

• The Index has managed to hold above the 9800/750 key long-term support and formed a bullish daily “Hammer” candlestick pattern.
• The hourly (short-term) Stochastic oscillator has dipped back into its oversold region which suggests another potential upturn in price action for the Index is round the corner.
• The short-term resistances stands at 9880 follow by a more significant 10160 ( a confluence of the minor 13 January 2016 swing high and  close to the 50% Fibonacci retracement of the recent down move from 30 January 2016 high to 11 January 2016 low).
• In short-term trading, the key support zone rests at 9680 which is defined by yesterday and 11 January 2016 swing low areas follow by 9570 (excess of the key long-term support).

Key levels (1 to 3 days)

Intermediate support: 9680

Pivot (key support): 9570(excess of the key long-term support)

Resistances: 9980 & 10160

Next support: 9300

Conclusion

As long as the 9570 short-term pivotal support holds, the Index may see another round of upturn to retest 9980 before targeting the 10160 resistance.

Below 9570 is likely to see another drop to test the next support at 9300 (the swing low area of 24 August and 29 September 2015).

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