DAX40 PERF INDEX - DAX30 Broke the Consolidation Area to The Downside - 09/12/2016 (GMT)

The German DAX 30 index was consolidating above the critical level of 10386 and the minor resistance at 10800 during the last four weeks. Currently, the index penetrated the mentioned critical level and is moving near the 10382 price level. On Friday, the index plummeted more than 1.9% and met the 10386 resistance level.

The technical structure remains bearish, with the price meeting some short-term selling interest. Also, the price is moving below the 50-daily SMA and above the 100-daily SMA. Our expectation is a further decline in the 10081 support level or even more until the 9814 barrier if the sellers are strong enough. Looking at the oscillators, the MACD is moving lower within a positive territory while the RSI is moving below its mid-level suggesting a negative move in the next few sessions. Going to a lower timeframe, the technical indicators are following the oversold areas endorsing the bearish scenario. On the other hand, if there is a close candle above the 10386 barrier then the consolidation will continue and probably we are waiting for a retest of the 10800 support level.