dax daily outlook tues 22 sep potential push up before drop 1370972015

(Click to enlarge chart)

Key elements

• The Germany 30 Index (proxy for the DAX) has managed to inched higher from yesterday’s swing low at 9780 but it is still capped by the pull-back and trendline resistances (as per highlighted in pink) at 10180.
• The lower resistance at 10080 also confluences with the 50% Fibonacci retracement of the recent down move from 16 September 2015 high @3pm to 21 September 2015 low @4pm
• The hourly (short-term) Stochastic oscillator has 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: 10080

Pivot (key resistance): 10180

Support: 9780

Next resistance: 10320 (weekly pivot)

Conclusion

The short-term downtrend in place since 09 September 2015 high @2pm remains intact for the Index. However, short-term technical elements suggest that the on-going rebound has not ended and do expect a further potential push up towards the 10080/10180 significant resistance zone before another slide occurs to retest the 21 September 2015 low at 9780 in the first instance.

On the other hand, failure to hold below the daily (short-term) pivotal resistance at 10180 is likely to see a further squeeze up to test  the 10320 weekly pivotal resistance (click here for more details as per highlighted in our latest weekly outlook).

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