05, October 2016

DAX (a 4-hour chart)

General overview

European stocks opened higher on Tuesday. DAX grew as Deutsche Bank shares continued their recovery after receiving support from its major clients and some rivals.

Current situation

The DAX index continued with its recovery on Tuesday. The price moved from the level 10520 towards the nearest resistance at 10700. DAX broke the 100 and 200 EMAs upwards and headed away from them. The 50-EMA is turning upwards, the 100 and 200 EMAs are neutral in the 4 hours chart. The resistance is seen at 10700, the support is at 10520.

The histogram grew which is a buy signal. RSI is approaching the overbought area.

Trading recommendations

The overall picture is bullish now. We assume the price will keep growing towards 10700.