08, August 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

European stocks closed higher. The BoE quantities easing program together with the U.S labor data supported financial stocks on Friday.

Current situation

The trend is clearly bearish for now. DAX returned into the upwards channel. The index jumped to a fresh weekly high of 10370 after the NFP report. The resistance is at 10520, the support stands at 10350.

MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI approached the overbought area.

The price bounced off the 50-EMA in the 4 hours chart. The 50 and 100 EMAs are heading higher, the 200-EMA is neutral.

Trading recommendations

The pair holds a bullish tone. The potential growth target is the resistance level of 10520.