10, August 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

DAX strengthened on Tuesday and set a new local high following the U.S stocks. Technology, Insurance and Chemicals sectors shares grew and pulled the index after them.

Current situation

Technically, the short term picture is bullish. DAX maintained its strong bid tone on Tuesday. The price set a new local high at 10700. The resistance is at 10700, the support stands at 10520.

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

The price is heading north from the 50-EMA in the 4 hours chart. The 50, 100 EMAs are trending higher, the 200-EMA is neutral.

Trading recommendations

The price may pull back from the fresh highs. The sellers’ target is the level 10520.