09, November 2016

DAX (a 4-hour chart)

General overview

European stocks traded mix as investors were cautious awaiting for US President race results. Besides, a weaker Chinese imports data weighed on the stocks sentiment.

Current situation

DAX remained near weekly highs on Tuesday. Prices tried to extend their upward trajectory but failed to maintain their bid tone. After reaching 10483 the benchmark turned around and sharply dropped to 10400, bouncing upwards tight after that. The 100-EMA limited the index recovery in the 1 hour chart. The line rejected DAX downwards. The 100 and 200 EMAs direction is downwards, while the 50-EMA is neutral. The resistance is seen at 10500, the support is at 10400.

If MACD remains within the negative territory, sellers’ positions will remain strong. RIS was neutral on yesterday’s trades.

Trading recommendations

If bulls retain control the index may grow to 10500. A clear break below 10400 will indicate DAX further weakness towards 10350 and 10300.