dax pull back towards 10505380 support before new potential up move 1828152016
Daily Outlook, Thursday 25 August 2016 (Click to enlarge chart What happened earlier/yesterday The Germany 30 Index (proxy for the DAX futures) has staged an […]
Daily Outlook, Thursday 25 August 2016 (Click to enlarge chart What happened earlier/yesterday The Germany 30 Index (proxy for the DAX futures) has staged an […]
The Germany 30 Index (proxy for the DAX futures) has staged an initial dip but managed to hold above the predefined intermediate support of 10505 as expected. Thereafter, it has staged a rebound to retest the minor range top in place since Monday, 22 August 2016 at 10640 before it traded sideways throughout yesterday’s late European session.
Please click on this link for a recap on our previous daily short-term technical outlook/strategy.
Intermediate support: 10505
Pivot (key support): 10380
Resistances: 10640, 10806 & 10990/11050.
Next support: 10090
Maintain bullish stance with risk of an initial minor decline. The Index may see a slide first to retest the lower boundary of the bullish ascending channel at the 10505/380 support zone before another potential rally materials towards the minor range top at 10640 before targeting next resistance (minor swing high area of 15 August 2016) at 10806 in the first step.
On the other hand, failure to hold above 10380 key medium-term support is likely to invalidate our preferred medium-term bullish view to see the start of a corrective decline but not a bear market crash at this juncture. The next support rests at 10090 which is defined by the medium-term swing low area of 03 August 2016 and close to the 50% Fibonacci retracement of the entire up move from 24 June 2016 low to last week high of 10806.
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