dax daily outlook wed 07 oct 995010080 is the key resistance to watch 1507522015

(Click to enlarge charts)

What happened yesterday

The Germany 30 Index (proxy for the DAX) has pushed up above the short-term pivotal resistance at 9884 and traded sideways throughout the European/U.S. sessions.

Please click on this link for a recap on our previous daily outlook.

Key elements

• The Index is now testing the upper limit of a descending channel (in pink) in place since 09 September 2015 high. In addition, its remains below the 10080 weekly pivotal resistance which is the pull-back resistance of a longer-term descending channel bearish breakout (in purple) that has rejected the price action in a previous occasion on 09 September 2015.
• The daily (medium-term) RSI oscillator still remains below its resistances and the 50% neutrality level.
• The hourly (short-term) Stochastic oscillator has reached its extreme overbought level which suggests limited upside potential at this juncture.
• The short-term significant support stands at the 9735/9650 zone which is closed to the previous two minor swing highs of 25 September 2015 @8pm and 01 October 2015 @11am.

Key levels (1 to 3 days)

Intermediate resistance: 9950

Pivot (key resistance): 10080 (weekly pivot)

Support: 9735/9650

Next resistance: 10520

Conclusion

As long as the 10080 key pivotal resistance is not surpassed, the expectation of a potential push down remains for the Index for a test on the 9735/9650 support in the first step.

However, a break above the 10080 pivotal resistance is likely to invalidate the medium-term “last push” down scenario to set up an assault towards the next resistance at 10520.

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