German DAX 30 has been moving below the 12480 strong resistance level after the strong sell-off at the end of the previous month. The critical death cross between the 50 and 200 medium-term simple moving averages (SMAs) indicating significant selling interest.
Looking at the daily timeframe, the RSI indicator holds below the 50 level and is flattening. However, the stochastic oscillator posted a downward crossover within the %K and %D while is approaching the 20 level.
Further losses should see the August low of 11865 acting as a major support before hitting the 38.2% Fibonacci retracement level slightly above 11690 of the upleg from 8695.50 to 13600.
In the event of an upside reversal, the 23.6% Fibonacci mark just below the 12480 resistance level could act as a barrier before being able to re-challenge the 12620 barrier. If there is a break above this level, the price could meet the death cross near 12716 at the time of writing. Further gains could lead the way towards the 12810 price level.
