dax daily outlook tues 12 apr 2016 potential push down towards short term range support below 9780 r

(Click to enlarge charts)

What happened earlier/yesterday

The Germany 30 Index (proxy for the DAX futures) has continued to shape the expected minor corrective rebound from last Thursday, 08 April 2016 low of 9442 (+2.84%).

Key elements

• The Index is now coming close to its former range support now turns pull-back resistance at 9780 where it may face the risk of an exhaustion in on-going minor corrective rebound. Please click here to recap our latest weekly technical strategy/outlook published yesterday.
• The pull-back resistance of 9780 also confluences with a Fibonacci cluster (50% Fibonacci retracement of the decline (wave 3/) from 30 march 2016 high of 10099 to 08 April 2016 low + 1.00 Fibonacci projection from yesterday, 11 April 2016 low of 9521 @3pm).
• The hourly (short-term) Stochastic oscillator has just exited from its overbought region and still has room for further potential downside before reaching its extreme oversold level. These observations suggest that short-term downside momentum of price action has resurfaced.
• The significant short-term support now rests at the 9520/442 zone which is defined the former swing low area of 06 April and 8 April 2016.

Key levels (1 to 3 days)

Pivot (key resistance): 9780

Support: 9520/442

Next resistance: 9900 (weekly pivot)

Conclusion

As long as the 9780 daily short-term pivotal resistance is not surpassed the Index is likely to see a potential swing move down to target its range support at 9580/520.

However, a clearance above the 9780 short-term pivotal resistance may negate the bearish tone to see a push up to test this week medium-term pivotal resistance at 9780.

Disclaimer

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments. City Index recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com.au, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. GAIN Capital Australia Pty Ltd (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.