04, November 2016

DAX (a 4-hour chart)

General overview

European stocks remained neutral on Thursday after a two-day decline. The latest corporate earnings reports and growth of banking sector supported the Eurozone stocks.

Current situation

The index gapped higher at the open on Thursday. However, the index failed to extend its gains and edged lower immediately after the gap. DAX was under pressure during the night session and slightly recovered post-European open. The 10400 level is a current barrier which limits DAX further recovery. The price continues developing well below the moving averages. The moving averages extended their decline in the 4 hours chart. The resistance is seen at 10400, the support is at 10300.

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

Trading recommendations

Buyers are making attempts to break through 10400. If they succeed we will see the index rise towards 10500 resistance area.