DAX (a 4-hour chart)
European stock traded lower on Friday due to Retail, Media and Transportation & Logistics shares weakness in Germany.
DAX gapped downwards on Friday and continued moving lower during the day. The price was struggling with the level 10500 the whole day and finely broke it at close of trade. The moving averages are mixed in the 4 hours chart. The 50 and 200 EMAs are moving higher. The 100-EMA is pointing south, crossing the 50-EMA downwards. The resistance is seen at 10500, the support is at 10400.
MACD decreased which indicates the buyers’ positions weakening. The RSI oscillator moved downwards.
If the downward pressure persists the price will decline below 10500. Sellers will lead the index towards 10400. If the level 10500 holds DAX could escalate to 10600.