Featured Trade: DAX uptrend remains intact

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Short-term technical outlook on DAX/Germany 30 (Thurs 25 Apr)



click to enlarge charts

Key technical elements

  • Since the bullish breakout from its 12100 former major descending resistance in place since 23 Jan 2018 all-time high level of 13600, the Germany 30 Index (proxy for the DAX futures) has continued to surge and hit the lower limit of the medium-term resistance/target of 12350 (click here for a recap on our previous weekly technical outlook).
  • Momentum remains positive where the daily RSI oscillator has not flashed any bearish divergence and still has further potential room to manoeuvre before it reaches an extreme overbought level of 85. The short-term hourly RSI oscillator has continued to hover above a corresponding support at the 55 level.
  • The next significant immediate resistance zone stands at 12450/525 which is defined by the upper boundary of the medium-term ascending channel from 26 Dec 2019 low and a Fibonacci expansion cluster).
  • The key short-term support rests at 12250 which is defined by the former minor swing high area of 23/24 Apr 2019 and the ascending trendline from 25 Mar 2019 low.

Key Levels (1 to 3 days)

Intermediate support: 12290

Pivot (key support): 12250

Resistances: 12450 & 12525

Next support: 12100

Conclusion

If the 12290 key short-term pivotal support holds, the Index is likely to stage another potential upleg to target the next intermediate resistances at 12450 and 12525.

On the other hand, an hourly close below 12250 negates the bullish tone for a deeper pull-back to retest the 12100 pull-back support of the former major descending resistance from 23 Jan 2018 high.

Charts are from City Index Advantage TraderPro




Related tags: Germany 40

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