Featured Trade: DAX recent rebound has reached a key inflection zone

DAX may see a minor bearish reversal below 11205.

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

Click to enlarge charts

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)


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.

Charts are from City Index Advantage TraderPro


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 report, 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.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

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.