02, November 2016

DAX (a 4-hour chart)

General overview

European stocks edged lower when Shell and BP earnings reports headed different ways. Shell shares added 3,1%, while BP shares fell.

Current situation

DAX index moved lower on Tuesday. The price had a sharp drop below 10700 in the Asian session. Prices weakened towards 10600 during the European hours and broke the level in early US trades. The index extended its losses after the break advancing towards 10500. The 50 and 100 EMAs extended their growth in the 4 hours chart, the 200-EMA is neutral. The price broke the 50 and 100 EMAs and approached the 200-EMA at the beginning of the New York session. The resistance is seen at 10600, the support is at 10500.

MACD is in the negative area. The indicator decreased which confirms the strength of the sellers. RSI oscillator headed towards the oversold area.

Trading recommendations

As the most probable scenario, we consider further moving downwards towards the level at 10500.