dax daily outlook wed 18 nov cautious as we are approaching the 1105011100 key intermediate resistan

(Click to enlarge charts)

What happened yesterday

The Germany 30 Index (proxy for the DAX) has staged a bullish breakout from its former short-term trendline resistance linking the lower highs since 09 November 2015 and printed a high of 10977. Thereafter, it traded sideways throughout the U.S. session.

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

Key elements

• The Index has a bullish breakout from its former short-term trendline resistance linking the lower highs since 09 November 2015 now turns pull-back support (in dotted pink) at 10830.
• The aforementioned 10830 pull-back support also confluences with a Fibonacci retracement cluster.
• The key intermediate resistance to watch will be at 11050/11100 which is defined by the trendline resistance linking the lower highs since 13 April 2015 and a 1.1618 Fibonacci projection of a lower degree up move from 16 November 2015 low @3pm to 16 November 2015 high @7pm projected from the 16 November 2015 low @10pm (see daily & 4 hour charts).

Key levels (1 to 3 days)

Pivot (key support): 10830

Resistance: 11050/11100

Next support: 10680 & 10600

Conclusion

The short-term bullish trend in place since this Monday, 16 November 2015 low remains intact but do be cautious as the Index is now coming close to a key near-term resistance at 11050/11100. We have adjusted the daily (short-term) pivotal support to 10830 for a potential push up to target the 11050/11100 zone.  

However, a crack below the 10830 pivotal support is likely to unleash a short-term decline towards the next support at 10680 and even 10600 (the trendline support linking the higher lows since 29 September) before the expected medium-term up side movement resumes.

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