Featured Trade DAX recent rebound has reached a key inflection zone

Short-term technical outlook on DAX (Tues 12 Feb)

Key technical elements

The Germany 30 Index (proxy for the DAX futures) has staged a 2.7% rebound from its recent 08 Feb 2018 minor swing low of 10862 to print a current intraday high of 11156 in today, 12 Feb European opening session. The current intraday high of this rebound has aligjned closely with a Fibonacci cluster at 11150/185 (61.8% retracement of last week’s slide from 05 Feb 2019 high to 08 Feb 2019 low & 1.00 expansion of the current push up from 08 Feb 2019 low to 11 Feb 2019 high projected from 11 Feb 2019 European session low of 10971).
The aforementioned Fibonacci cluster also coincides closely with a minor graphical resistance at 11205 (the former minor range top from 01/05 Feb 2019) (see 1-hour chart).
In addition, both the 4 and 1-hour Stochastic oscillators have reached their respective extreme overbought levels which increases the probability of a mean reversion in price action of the on-going rebound from 08 Feb 2018 low.

Key Levels (1 to 3 days)

Pivot (key resistance): 11205

Supports: 11045, 10960 & 10870

Next resistances: 11310 & 11390 (medium-term pivot)

Conclusion

The recent rebound seen in the Index is now coming close to a significant inflection zone and if the 11205 key short-term pivotal resistance is not surpassed, its price action may see a decline to retest the near-term supports of 11045 follow by 10960 with a maximum limit set at the 08 Feb 2019 minor swing low area of 10870.

However, a clearance above 11205 invalidates the bearish scenario for a further squeeze up towards 11310 and even the lower limit of the key medium-term pivotal resistance zone at 11390.

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