01, July 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

The German stock market closed the day in a green zone due to strengthening of the public services sector, consumer goods and food and beverage.

Current situation

The index spent Thursday in a green zone. DAX showed a sharp growth and reached the next resistance within the hours. The resistance comes at 9760, the support exists at 9550.

The indicators recommend long positions. MACD is in the negative area; its histogram grew, that is a buy signal. RSI bounced from the oversold area and grew upwards. If the oscillator grows further, that will be another buy signal. The Moving Averages (100 and 200) direction is downwards, the 50-day moving is horizontal. The price DAX broke the 50-EMA but did not grow further.

Trading recommendations

We suppose the pair will go to 10000 first. Having overcome the first target the price might go upwards to 10175.