(Click to enlarge chart)
- The Germany 30 Index (proxy for the DAX) has pushed up slightly higher above the medium-term intermediate resistance at 9800 (printed a high of 9884 yesterday). Interestingly, it has managed to stage a retreat from the 9884 level which is also the upper limit of the descending channel (in pink) in place since 09 September 2015 high (please click on this link for more details as per highlighted in our latest weekly outlook).
- The significant short-term supports stands at 9650 follow by 9437 (the previous two minor swing lows turning points of 02 Oct 2015 @9pm and 29 September 2015 @9pm.
- The hourly (short-term) Stochastic oscillator has almost reached its extreme oversold level which highlights the risk of a short-term rebound in price action of the Index.
Key levels (1 to 3 days)
Intermediate resistance: 9820
Pivot (key resistance): 9884
Support: 9650 & 9437
Next resistance: 10080 (weekly pivot)
As long as the short-term significant resistance zone of 9820/9884 is not surpassed, the Index may see a further decline towards 9650 and even the next support at 9437.
On the other hand, a clearance above the 9884 daily (short-term) pivotal resistance is likely to negate the bearish tone to see a squeeze up to test the 10080 weekly pivotal resistance.
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