08, November 2016

DAX (a 4-hour chart)

General overview

European markets traded higher on Monday when the FBI announced that they would not press any charges against Hillary Clinton which boosted market sentiment.

Current situation

DAX gapped higher at the open on Monday. Prices jumped from 10200 towards the 10400 resistance area. Buyers met a barrier around 10461 and were unable to drive the index higher. The benchmark rolled back and spent the day around 10400. Prices jumped over the 50-EMA in the 1 hour chart. The 100-EMA acted as a resistance and did not let the price grow further. The 50-EMA is turning neutral while the 100 and 200 EMAs maintained their bearish slope. The resistance is seen at 10500, the support is at 10400.

MACD grew which indicates the sellers’ positions weakening. RSI is going north which confirms the current upward momentum.

Trading recommendations

Sellers may try to fill the gap and push the price lower. A downtrend will start as soon, as DAX drops below the support level 10400. Prices may weaken to 10300.