02, August 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

The European stock market enjoyed a mixed session on the back of the mining sector increase and the banking sector mixed dynamics after the Stress Test Results.

Current situation

Technically, the main trend is up. The price moved away from the current highs. Traders pushed the price from the 10480 to the 10300 region. The current rebound below 10480 should be considered corrective. The instrument closed the day bearish. The resistance is at 10350, the support stands at 10175.

The indicators recommend short positions. MACD is in the positive area. The histogram decreased which indicates the buyers’ positions weakening. RSI left the overbought area.

The 50 and 100 Day EMAs are moving upwards in the 4 hours chart. The 200-EMA is neutral in the mentioned time frame.

Trading recommendations

After the support level of 10175 breakthrough down the way to the support 10000 will be opened.