04, August 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

The European stocks traded lower on the back of the HSBC, SocGen и Credit Agricole shares growth.

Current situation

The tone is still positive in the market. The index had a positive day on Wednesday. DAX30 was able to reverse some of its previous losses. The index is trying to regain the 10175 mark. The resistance is at 10175, the support stands at 10000.

MACD is in the negative area. The histogram decreased which indicates the sellers’ positions strengthening. RSI rebounded from the overbought area.

The price broke 50-EMA, but was unable to leave it and stayed in its region. The 50-EMA acts as a resistance for the price now. The 50 and 100 Day EMAs are moving upwards, the 200-EMA is neutral.

Trading recommendations

If the price fixates below the level of 10175, it may continue the downward trend in the short term. The potential targets are 10000 and 9760.