dax 10460 needs to be taken out to see a further potential short term push up 1830982016

Daily Outlook, Tues 20 September 2016

(Click to enlarge charts)

What happened earlier/yesterday

The Germany 30 Index (proxy for the DAX futures) has managed to inch higher just above the 10230 (excess) medium-term pivotal support as the negative news flow triggered by the legal woes of Deutsche Bank with a latest fine of EUR 12.5 billion over complex mortgage-backed securities transactions that is being imposed by the U.S. Department of Justice has been put on a back burner.

Please click on this link for a recap on our latest weekly technical/outlook published yesterday, 19 September.

Key elements

• The daily (medium-term) RSI oscillator has managed to stage a rebound from its key ascending trendline support in place since August 2015 which suggest that the downside momentum of the recent decline from 08 September 2016 minor range top high has started to abate.
• Current price action is being supported by a minor ascending trendline in place since last Friday, 16 September 2016 low which is just above  the minor swing low congestion area of 10315 (see hourly chart).
• In the near-term the Index is still being capped by a descending trendline resistance (depicted in pink) now at 10460. The next intermediate resistance stands at which is defined by the former minor swing low area of 08/09 September 2016 and close to the  61.8%/76.4% Fibonacci retracement of the recent decline seen from 08 September 2016 high (the recent ECB meeting) to last Friday, 16 September 2016 low of 10245.

Key levels (1 to 3 days)

Pivot (key support): 10315

Resistances: 10460 & 10600/670

Next support: 10230 (medium-term pivotal support)

Conclusion

The short-term pivotal support now stands at 10315 and the Index needs to break above the 10460 level to reinforce a potential further push up to target the next resistance at 10600/670 in the first step.

On the other hand, failure to hold above the 10315 short-term pivotal support is likely to put the preferred bullish tone on hold for a further slide to test the 10230 medium-term pivotal support.

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