31, October 2016

DAX (a 4-hour chart)

General overview

European stocks traded lower on Monday as Oil & Gas sector decline weighed on the stocks.

Current situation

The index gapped higher at the open on Monday and filled the gap Post-European opening. Prices spent the day in the middle of the tight range. The 100 and 200 EMAs are neutral in the 1 hour chart, the 50-EMA is pointing lower. The price tested the 50-EMA, but failed to move higher. The index got under selling pressure on any up-move towards 10700. The resistance is seen at 10700, the support is at 10600.

MACD is in the negative area. MACD remained at the same level which confirms the strength of sellers. RSI is neutral.

Trading recommendations

If DAX remains in red figures we will be selling the benchmark if the price drops below 10600.