06, January 2017

DAX (a 4-hour chart)

General overview

European futures edged lower on Thursday but remained around their recent highs. Energy stocks traded mixed with French and Italian shares fell down and Norwegian companies shares gained. Financial stocks were mixed as well. French bank led its shares lower while Germany’s Deutsche Bank and Commerzbank shares rose.

Current situation

DAX30 gapped lower at the daily open when prices jumped from 11578 to 11552. The index turned around right after the gap and reversed all its losses. Buyers led the price to the nearest resistance level – 11600. However, bulls failed to retake the hurdle and the benchmark rolled back. According to the 1 hour chart the price tested the 50-EMA. DAX30 failed to break the 50-EMA and was struggling with it during the European hours. The benchmark remained above the moving averages which kept pointing higher in the same chart. The resistance exists at 11600, the support stands at 11500.

MACD remained at the same level which confirms the strength of buyers. RSI indicator was within the undervalued territory favoring a move south.

Trading recommendations

The price is bullish on intraday charts. The index now seems to be struggling with its immediate resistance at 11600. Should the price break above the hurdle and the benchmark will extend its bullishness towards 11700.