- Global stock averages have been under negative pressures all week from concerns regarding the coronavirus.
- However, the downside forces were eased late yesterday after global share indices rebounded after the World Health Organisation painted a less negative picture on the coronavirus than had been expected.
- Although the outlook for stock indices remains for potential further losses into February, in the very near term (today), the bias has shifted higher.
- Here we look at the benchmark German stock average, the DAX.
DAX future day trade outlook: Rebound bias
A selloff Thursday to a new correction low through 13157.5 but to rebound from above the next 13079.5 level from 13115 and to then stage a solid recovery to probe into the 13270/280 resistance area, to 13275, to ease bear forces and flip risks higher again for Friday.
- We see an upside bias for 13275/280 and 13215.5; a break above here aims for 13373.5, maybe 13398.5.
- But through 13174 opens risk down towards 13115 and maybe 13079.5.
DAX future intermediate-term outlook
A January plunge below 13357 set an intermediate-term range as 12939 to 13639.
Upside threat: Above 13639 sets an intermediate-term bull trend to aim for 13750 and 13955.
Downside threat: Below 12939 sees an intermediate-term bear trend to aim for 12786.5, 12375.5 and 12000.
DAX Future Chart