dax daily outlook tues 05 apr 2016 further potential bearish pressure below 97609825 resistance 1804
<p>(Click to enlarge charts) What happened earlier/yesterday The Germany 30 Index (proxy for the DAX futures) has staged the initial push up towards the 9930 […]</p>
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What happened earlier/yesterday
The Germany 30 Index (proxy for the DAX futures) has staged the initial push up towards the 9930 intermediate resistance level (printed a high of 9907) as per highlighted in our latest weekly strategy/outlook published yesterday (please click here for details).
Interestingly, it has started to reverse down from 9907 and broke below the 9750 level.
Key elements
- The Index remains in a bearish dynamic since last week bearish breakout of the “Ascending Wedge”. Yesterday’s break below 9750 has reinforced our bearish expectation that the countertrend rally from 11 February 2016 low has topped right below the 10130 key medium-term risk level.
- In the short-term, the Index has started to evolve within a bearish descending channel in place since 30 March 2016 high with its upper boundary (resistance) now at 9825 with also coincides with the former minor swing low area of 29 March 2016 @5pm.
- A short-term support rests at 9580 which is defined by the swing highs area of 22/26 February 2016 follow by our medium-term target (support zone) at 9480/395.
- The hourly (short-term) Stochastic oscillator has already dipped into the oversold region which highlights the risk of a minor rebound/consolidation at/near the 9580 short-term support.
Key levels (1 to 3 days)
Intermediate resistance: 9750/60
Pivot (key resistance): 9825
Supports: 9850 & 9480/395
Next resistance: 9930
Conclusion
Technical elements remain bearish. As long as the 9825 daily short-term pivotal resistance is not surpassed, the Index is likely to shape a further potential decline towards 9580 (risk of minor a rebound/consolidation) before resuming its potential downward trajectory towards the medium-term target (support zone) of 9480/395.
However, a clearance above the 9825 short-term pivotal resistance is likely to negate the bearish tone (not a change on the medium-term bearish trend) to see a push up to retest the 9930 resistance.
Disclaimer
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