09, September 2016

DAX (a 4-hour chart)

General overview

European stocks traded lower after the ECB’s decision to keep the rate unchanged.

Current situation

The price holds a bullish tone and the trend is objectively bullish in the 4 hours chart. The index remained close to the recent highs, trading above the support 10700 ahead of the ECB meeting. The price retreated from the weekly high and dropped below 10700 in the North American session. The DAX is hovering above the moving averages (50, 100 and 200) in the 4 hours chart. The moving averages direction is upwards. The resistance is seen at 10700, the support lies at 10520.

MACD remained at the same level which confirms the strength of buyers. RSI left the overbought area.

Trading recommendations

DAX may test the support level 10520 soon. Should the price break the level and its downward trajectory will continue towards 10350.