DAX (a 4-hour chart)
European stocked opened neutral due to concerns over the ECB’ annotative program tapering.
DAX traded sideways on Wednesday. The index traded within a tight range between 10600 and 10520. The DAX index got under selling pressure on any up-move towards 10700. The price spent the day around the 200-EMA which acts as a support for the index. The 50 and 100 EMAs crossed the 200-EMA downwards. The 200-EMA is pointing higher, the 100-EMA direction is downwards, the 50-EMA is turning upwards. The resistance is seen at 10700, the support is at 10520.
The histogram grew which is a buy signal. RSI is consolidating within the overbought area.
The index is trying to break above 10600 upwards. A clear strength above this mark will pave way for continuation of the index’s upward trajectory towards 10700.