dax daily outlook thurs 17 sep 10320 remains the potential upside trigger level 1325292015

(Click to enlarge chart)

What happened yesterday

The Germany 30 Index (proxy for the DAX) has push up in the early European session, tested the 10320 upside trigger level but failed to make any breakthrough above it.

Please click on this link for a recap on our previous daily outlook.

Key elements

• The Index continues to evolve within a complex ascending range configuration with upper limit (resistance) at 10650 and lower limit (support) now at 10170.
• Based on the Elliot Wave Principal, this complex range configuration is a typical 5 wave structure in the form of (a, b, c, d &e). Current price action is undergoing the wave d which is an upside movement towards the upper limit (resistance) of the range configuration.
• The hourly (short-term) Stochastic oscillator has dipped and it is coming close to its oversold region which suggests the recent pull-back in price action is coming close to a potential upside reversal point.

Key levels (1 to 3 days)

Intermediate support: 10170

Pivot (key support): 10080

Resistance: 10320, 10510 & 10650

Next support: 9890

Conclusion

As long as the 10170/10080 significant short-term support zone holds and a break above the 10320 upside trigger level, the Index is likely to unleash a potential rally towards 10510 before 10650 (upper limit of the complex range configuration).

On the other hand, failure to hold above the 10080 pivotal support may invalidate the bullish expectation for a slide towards the next support at 9890.

Disclaimer

This report 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 email, 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, a trading name of GAIN Capital Singapore Pte Ltd.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.