03, November 2016

DAX (a 4-hour chart)

General overview

European stocks moved lower on the growing concerns over the U.S. presidential elections. Negative A.P. Moller-Maersk earnings report weighed on the stocks as well.

Current situation

DAX index gapped higher at the open on Wednesday. However the price did not extend a bid tone and immediately turned lower after the gap. The index filled the gap in early Europe trades. Sellers moved prices lower towards 10400 and tested the level in the North American session. The DAX index stayed below the moving averages (50, 100 and 200) during the day. The moving averages are turning downwards. The resistance is seen at 10500, the support is at 10400.

The MACD indicator continues consolidating within oversold levels. The RSI indicator is near undervalued territory, favoring a new move lower.

Trading recommendations

A move below 10400 will open the way towards 10350.