dax daily outlook tues 29 sep bearish tone intact to test the 9320 weekly pivotal support 1435642015

(Click to enlarge charts)

Key elements

• The Germany 30 Index has continued to drift lower in the U.S. session in line with the sell-off seen the major U.S. benchmark Indices. On the short-term term, the Index is being capped by a descending trendline (in red) joining the highs since 18 September 2015 @3am now acting as a resistance at 9550 (see 1 hour chart).
• The critical support to watch now is at 9320 which is also the weekly pivot defined by the ascending trendline (in orange) joining the lows since 11 September 2011 and the ‘Black Monday”, 24 August 2015 low (see weekly & daily charts).
• The hourly (short-term) RSI oscillator remains bearish below its trendline resistance and the 50% neutrality level.

Key levels (1 to 3 days)

Intermediate resistance: 9500

Pivot (key resistance): 9550

Support: 9320 (weekly pivot)

Next resistance: 9715

Conclusion

Short-term technical elements are bearish. As long as the 9500/9550 short-term significant resistance zone is not surpassed, the Index is likely to continue its downward spiral to target the 9320 weekly pivotal support.

However, a break above the 9550 daily (short-term) pivotal resistance may dampen the bearish tone to see a squeeze up to test the short-term range top at 9715.

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